POSCO Group is making another attempt to establish a steel plant in Odisha (formerly Orissa), India. South Korea’s leading steelmaker previously made four separate attempts to construct a steel plant in the city since 2005, but the projects were suspended due to policy changes by the Indian government and joint venture complications.
The company decided to make another attempt, driven by rising demand for automotive steel in India and its decade-long experience operating cold rolling and plating facilities in India, which produce steel used in cars and home appliances.
POSCO Group announced on Oct. 29 that it signed a memorandum of understanding (MOU) with India’s top steelmaker, JSW Group, to partner in steel manufacturing, lithium-ion battery materials, and renewable energy. Together, the two companies plan to build an integrated steel mill in Odisha with an annual production capacity of 5 million tons. Steel production is broadly divided into three stages: ironmaking, steelmaking, and rolling. A facility with all three processes is called an integrated steel mill.
According to WSD, a leading steel market analysis firm, India’s steel demand is projected to grow at an annual rate of 7%, reaching 190 million tons by 2030.
