South Korean steel giant POSCO has signed a memorandum of agreement (MoA) with Shree Uttam Steel and Power to set up an integrated steel manufacturing facility under a joint venture arrangement in India.
Shree Uttam Steel and Power is fully owned by the Miglani family who are the co-promoters of Uttam Galva Steels with ArcelorMittal.
The MoA is the first step of a process to establish a JV between the two companies.
The proposed JV plans to set up three MTPA integrated steel plant at Satarda in Maharashtra in two phases, Uttam Galva said.
“We have been associated with POSCO across various aspects of the steel business over the years. The signing signals our intention to further advance our collaboration with POSCO to a higher level on the value chain,” Uttam Galva’s Ankit Miglani said.
This JV will help us to develop an integrated steel manufacturing facility in line with the government’s ‘Make in India’ initiative, Miglani added.
This is POSCO’s second attempt to set up a steel plant in India.
The company has put on hold a $12 billion steel plant in Karnataka after signing a memorandum of understanding with the Karnataka government nearly 10 years back.
The Odisha government had acquired about 2,700 acres of land for the first phase of the project in Jagatsinghpur district, but the administration has not been able to get physical possession of the land so far.
