In a bid to strengthen the high-grade steel market position and enhance capability in response to carbon reduction requirements, Adani Group and POSCO have agreed to explore business cooperation opportunities, including establishing a green, environment-friendly Integrated Steel Mill at Mundra, Gujarat, as well as other businesses.
Both firms have also signed an MoU with the government of Gujarat for support and cooperation from the government for the collaboration.
According to a press release from the Adani Group, 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.
The statement further said that both parties are examining various options to cooperate and leverage each company's technical, financial, and operational strengths.
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. In addition, POSCO and Adani intend to utilise renewable energy resources and green hydrogen, in line with both partners' ESG commitments to sustainability and energy efficiency.
Jeong-woo, Choi, CEO, 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.'
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, Adani Group, said, '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.'
The Korean company ran POSCO-Maharashtra, a 1.8-million-tonne cold-rolled and galvanised mill regarded as India's most advanced automotive steel supplier, and four processing centres in Pune, Delhi, Chennai and Ahmedabad. It is anticipated that this business cooperation between POSCO and Adani will bring dominant partnership synergy in the Indian steel industry.
NB: Photo is representational; courtesy: POSCO.