Korea’s POSCO inks MOU with India’s JSW Steel inks pact to build steel plant

POSCO Group Chairman Chang In-hwa and JSW Group Chairman Sajjan Jindal signed an MOU on steel, battery materials, and renewable energy on the 21st. (POSCO Holdings)

With its population of 1.4 billion people, India has a fast-growing steel market with soaring demand for automotive and construction steel. POSCO will set up an integrated steel plant in the eastern state of Odisha, India, a few years after it scrapped plans for a similar investment in the state.

The Seoul-based steelmaker signed a memorandum of understanding (MOU) with JSW Steel, India‘s largest steelmaker based in Mumbai. The agreement explores a collaboration on secondary battery materials and renewable energy in addition to steel production.

An integrated steel plant has all the functions for primary steel production and the fabrication of steel-related products. POSCO runs three integrated steel mills in Indonesia, China, and Vietnam, with the new plant in Odisha set to become the fourth.

POSCO first signed a partnership with Odisha’s state government in 2005 to construct a steel mill with a production capacity of 12 million metric tons.

However, the project faced strong opposition from residents over environmental concerns and a lack of support from India‘s central government, forcing it to be canceled in 2017.ĥ

POSCO returned to the state because of India’s substantial growth prospects. With an anticipated annual economic growth rate of 6.7 percent through 2030, India is one of the world‘s fastest-growing markets. Steel demand, according to steel analyst World Steel Dynamics, is projected to grow at an average annual rate of 7 percent by 2030.