POSCO and the Adani Group have agreed to explore business cooperation opportunities, including the establishment of a green, environment-friendly Integrated Steel Mill at Mundra, Gujarat, as well as other businesses.
The investment is estimated to be up to $5 Billion.
The non-binding MoU signed between POSCO and Adani intends to further collaborate at the group business level in various industries such as renewable energy, hydrogen, and logistics in response to carbon reduction requirements. Both parties are examining various options to cooperate and leverage the technical, financial, and operational strengths of each company.
The collaboration includes evaluating a joint Integrated Steel Mill at Mundra, Gujarat, based on POSCO's state-of-the-art technology and cutting-edge R&D capability. POSCO and Adani intend to utilize renewable energy resources and green hydrogen, in line with both partners' ESG commitments to sustainability and energy efficiency.
Jeong-woo, Choi, the CEO of POSCO, said, "POSCO and Adani are able to come to great synergy in the steel and environment-friendly business with POSCO's state-of-the-art technology in steel making and Adani's expertise in energy and infrastructure. I hope this cooperation will be a good and sustainable business cooperation model between India and South Korea."
The Adani Group, founded in 1988, is the largest and fastest-growing portfolio of diversified businesses in India with interests in Logistics (seaports, airports, shipping and rail), Resources, Power Generation and Distribution, Renewable Energy, Gas and Infrastructure, and other sectors. Adani has recently announced a massive investment plan to become the world's largest renewable energy company and produce green hydrogen in the future.
Gautam Adani, Chairman of the Adani Group, said, "We are very pleased to announcethe partnership with POSCO, the world's most efficient and advanced steel manufacturer, in steel production and carbon reduction. This partnership will contribute to the growth of India's manufacturing industry and the Aatmanirbhar Bharat scheme championed by the Government of India. It will also help to strengthen India's standing in green businesses."
POSCO runs POSCO-Maharashtra, a 1.8-million-ton cold-rolled and galvanized millregarded as the most advanced automotive steel supplier in India, and four processingcentres in Pune, Delhi, Chennai and Ahmedabad.
It is anticipated that this businesscooperation between POSCO and Adani will bring dominant partnership synergy in theIndian steel industry.
POSCO and Adani have also signed an MoU with the Government of Gujarat for supportand cooperation from the Government for the collaboration.
(With inputs from ANI)