Korea's POSCO sets up a joint venture for a new Indian steel mill

Korea Iron and Steel Works Posco announced the formation of a Joint Working Group (JWG) with state-owned Rashtriya Ispat Nigam Limited (RINL) to open a new Greenfield steel plant in Visakhapatnam, South India. The two companies signed an initial investment agreement of approximately Rs 35,000 crores for the proposed 5 million tonnes per annum steel plant.

Representatives of both companies discussed the implementation plan in the presence of representatives of the Ministry of Steel. The meeting agreed to establish a JWG that will meet at regular intervals to facilitate the implementation of the initial MoU signed between them. Both companies will have one representative at the JWG.

Representatives of the Korean company have visited the existing RINL facility in Vizag several times. The proposed steel plant will be installed adjacent to the existing facility. The Korean Steel Mill was offered the land needed to build the plant, in addition to an uninterrupted supply of iron ore.

After commissioning, the plant will produce high quality steel products, primarily for the automotive industry.

This is Posco's third attempt to enter the Indian market. Previous attempts, in collaboration with the Odisha government in 2005 and with SAIL in 2007, have failed.