A green, environmentally friendly Integrated Steel Mill in Mundra, Gujarat, as well as other business ventures, have been agreed to by POSCO and the Adani Group. Up to $5 billion is expected to be invested.
Following on from POSCO and Adani’s non-binding memorandum of understanding, the companies plan to work together even more closely at the group business level in order to meet carbon reduction goals in various industries like renewable energy, hydrogen fuel cell technology, and logistics.
Both parties are looking at various ways to collaborate and leverage the strengths of each company’s technical, financial, and operational components.
A joint integrated steel mill in Mundra, Gujarat, based on POSCO’s cutting-edge technology and R&D capabilities, will be evaluated as part of the collaboration. Green hydrogen will be used by POSCO and Adani in accordance with their ESG commitments of sustainability and 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.”
One of India’s largest and fastest-growing portfolios of diversified businesses, the Adani Group, was founded in 1988 and has interests in logistics (seaport and air terminals), resources (oil and gas), renewable energy (wind and solar power), gas distribution, and other sectors. An investment plan by Adani to become the world’s largest renewable energy company and to produce green hydrogen has recently been announced.
Gautam Adani, Chairman of the Adani Group, said, “We are very pleased to announce the 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.”
There are four processing centers in India: POSCO-Maharashtra (1.8 million tons of galvanized steel), POSCO-Delhi (1.2 million tons), and POSCO-Ahmedabad (1.2 million tons). The Indian steel industry is expected to benefit greatly from this partnership between POSCO and Adani.
Government of Gujarat signed an MoU with POSCO and Adani for support and cooperation in their collaboration. – POSCO and Adani
