Adani Group & POSCO sign pact to establish a steel mill in Gujarat

Adani Group, an Indian multinational conglomerate, and South Korea's POSCO have reportedly signed an MoU for establishing a steel mill at Mundra, Gujarat.

It has been reported that POSCO and Adani group have agreed to discover business collaboration opportunities, including developing a green, environment-friendly integrated steel mill in Gujarat, and several other businesses. The investment is expected to be around USD 5 billion.

The mill will be based on high-tech technology, and leading-edge R&D capabilities of the POSCO, stated the company.

In addition, both the Adani group and POSCO plan to utilize renewable energy resources and green hydrogen, considering their corresponding ESG commitments to energy efficiency and sustainability.

The companies also signed a non-binding MoU to collaborate further in various hydrogen, logistics, and renewable energy industries. Moreover, both the parties are looking forward to considering multiple options for uniting and leveraging every company's technical, financial, and operational strength.

Gautam Adani, Chairman of the Adani Group, quoted that this collaboration would further contribute and support the manufacturing industry of India, as well as the Aatmanirbhar Bharat scheme, campaigned by the Government of India. It will also make the position of India stronger in the green business.

While commenting on the move, Jeong-woo, Choi, CEO of POSCO, said that the partnership with Adani is a great effort in the steel and environment-friendly business.

Choi mentioned that the firm believes that the collaboration will result in being a respectable and justifiable business cooperation model between India and South Korea.

Furthermore, POSCO already runs a 1.8-million-ton cold-rolled and electrified mill in Maharashtra and four processing centers in Delhi, Chennai, Ahmedabad, and Pune. Likewise, the Adani group has announced a huge investment plan to become one of the world's largest renewable energy companies.

Notably, the Gujarat government also signed an MoU with POSCO & Adani for support and cooperation.

Source Credit - https://www.businesstoday.in/latest/corporate/story/adani-group-south-koreas-posco-to-establish-steel-mill-in-gujarat-318909-2022-01-13