Indian billionaire Gautam Adani’s infrastructure group and South Korean steel major POSCO (005490.KS) aim to invest about $5 billion on projects that include setting up an integrated steel mill in the western state of Gujarat, the companies said.
The project is part of a pact between one of India’s most powerful conglomerates and POSCO, giving the South Korean steel major a fresh opportunity to cash in on growing steel demand in the South Asian nation.
The pact to explore business opportunities, under which both will invest about $5 billion, covers industries such as renewable energy, hydrogen, and logistics, the companies said in Thursday’s statement, without giving details.
“POSCO and the Adani group have agreed to explore business co-operation opportunities,” they said, adding that one of these was putting up a green, environment-friendly integrated steel mill at Mundra in the coastal state.
Adani did not immediately respond to a query on individual investments.
POSCO now runs a 1.8-million-tonne cold-rolled and galvanized mill in the western state of Maharashtra, supplying automotive steel to India’s leading automakers.
It dropped plans a few years ago for what was seen as India’s biggest foreign investment, a $12-billion steel plant project with annual capacity of 12 million tonnes in the eastern state of Odisha, stung by inordinate delays in land acquisition.
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