Adani, POSCO sign MoU for integrated steel mill

Insight Online News

Mumbai, Jan 13 : Gautam Adani led Adani Group on Thursday said it has entered into an agreement with POSCO to set up an integrated steel mill at Mundra, Gujarat, entailing an investment of USD 5 billion.

“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 company said in a regulatory filing.

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,” it said.

The collaboration includes evaluating a joint integrated steel mill at Mundra, based on POSCO’s state-of-the-art technology and cutting-edge R&D capability.

The company further said that POSCO and Adani intend to utilise renewable energy resources and green hydrogen, in line with both the partners’ ESG commitments to sustainability and energy efficiency.

“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,” POSCO CEO Jeong-woo Choi said.

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,” the company said.
POSCO and Adani have also signed a MoU with the Gujarat government for support and cooperation from the state for the collaboration.

Commenting on the development, Adani Group Chairman Gautam Adani 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. It will also help to strengthen India’s standing in green businesses.”

Recently, Adani announced a massive investment plan to become the world’s largest renewable energy company and produce green hydrogen in the future.

Founded in 1988, Adani Group, has diversified businesses in India with interests in logistics (seaports, airports, shipping and rail), resources, power generation and distribution, renewable energy, gas and infrastructure, and other sectors.

UNIINDIA

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