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POSCO Group Chairman Jang In-hwa Signs MOU for Business Cooperation with India's JSW Group (POSCO) |
[Alpha Biz= Reporter Kim Sangjin] POSCO Group has signed a memorandum of understanding (MOU) with India's largest steelmaker, JSW Group, to cooperate in steel, battery materials, and renewable energy sectors. The two companies plan to jointly build an integrated steel plant with an annual capacity of 5 million tons, equally split at a 50:50 ownership ratio.
The plant will be located in Odisha, India, with plans to eventually expand production capacity. The total investment for the project is estimated at 10 trillion KRW, with the investment set to unfold over 4 to 5 years, a scale the company considers manageable.
India's steel demand is projected to grow to 200 million tons by 2030, increasing at a rate of 6-7% annually. Despite potential oversupply in the local market, the companies believe their focus on high-end steel products will help mitigate risks.
POSCO Group already operates steel processing plants in Maharashtra, Delhi, and Chennai, including a 1.8 million-ton cold-rolled and galvanized steel plant. This new investment will enable POSCO to produce steel from the ground up locally, further strengthening its cost competitiveness.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
