Biznextindia : South Korean steel major POSCO and the Adani Group have agreed to explore business cooperation opportunities, including the establishment of a green, environment-friendly Integrated Steel Mill at Mundra, Gujarat, as well as other businesses. The investment is estimated to be up to USD 5 Billion. The non-binding MoU signed between POSCO and Adani intends to further collaborate at the group business level in various industries such as renewable energy, hydrogen, and logistics in response to carbon reduction requirements.
Both parties are examining various options to cooperate and leverage the technical, financial, and operational strengths of each company. The collaboration includes evaluating a joint Integrated Steel Mill at Mundra, Gujarat, based on POSCO’s state-of-the-art technology and cutting-edge R&D capability. POSCO and Adani intend to utilize renewable energy resources and green hydrogen, in line with both partners’ ESG commitments to sustainability and energy efficiency.
POSCO runs POSCO-Maharashtra, a 1.8-million-ton cold-rolled and galvanized mill regarded as the most advanced automotive steel supplier in India, and four processing centres in Pune, Delhi, Chennai and Ahmedabad. It is anticipated that this business cooperation between POSCO and Adani will bring dominant partnership synergy in the Indian steel industry. POSCO and Adani have also signed a MoU with the Government of Gujarat for support and cooperation from the Government for the collaboration.
This not for the first time, the South Korean steelmaker is trying to set up an integrated steel project in India. In 2005, POSCO had signed an MoU with Odisha government to set up an 12 MTPA integrated steel plant near Paradip. But the project was a non-starter owing to land acquisition issues and stiff local resistance.
“POSCO and Adani are able to come to great synergy in the steel and environment-friendly business with POSCO’s state-of-the-art technology in steel making and Adani’s expertise in energy and infrastructure. I hope this cooperation will be a good and sustainable business cooperation model between India and South Korea” Jeong-woo, Choi, the CEO of POSCO, said.
“We are very pleased to announce the partnership with POSCO, the world’s most efficient and advanced steel manufacturer, in steel production and carbon reduction. This partnership will contribute to the growth of India’s manufacturing industry and the Aatmanirbhar Bharat scheme championed by the Government of India. It will also help to strengthen India’s standing in green businesses” Mr Gautam Adani, Chairman of the Adani Group, said.