Korean steel maker and Gujarat-based Adani group have joined hands to forge a $5 billion partnership to explore setting up a greenfield integrated steel mill and other businesses in Gujarat’s Mundra.
“Delighted to launch a $5 Bn partnership with POSCO, the world’s most efficient and advanced steel manufacturer, for a green environment-friendly Integrated Steel Mill and other businesses in Mundra. This will boost manufacturing in India under Aatmanirbhar Bharat,” billionaire Gautam Adani announced on Twitter.
“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 Adani group’s media release stated.
Both Adani and POSCO signed a non-binding MoU on Wednesday. The MoU 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.
In India, the Korean company runs POSCO-Maharashtra, a 1.8-million-tonne cold-rolled and galvanised mill regarded as the most advanced automotive steel supplier in India, and four processing centres in Pune, Delhi, Chennai and Ahmedabad.
With a possibility of a new integrated steel factory, it is anticipated that this business partnership between the two group will bring dominant partnership synergy in the Indian steel industry.