POSCO and the Adani Group have agreed to explore business cooperation opportunities, including 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 USD five billion. The non-binding MoU signed between POSCO and Adani Group 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.
POSCO runs POSCO-Maharashtra, a 1.8 million tonne cold-rolled and galvanized mill regarded as the most advanced automotive steel supplier in India, 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.
POSCO and Adani have also signed an MoU with the government of Gujarat for support and cooperation from the government for the collaboration.
