Adani Group and South Korea’s POSCO have signed an MoU to establish a steel mill at Mundra in Gujarat. “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 USD 5 Billion,” stated the company in a statement.
The mill will be based on POSCO’s state-of-the-art technology and cutting-edge R&D capability, the company stated. Both POSCO and Adani Group intend to utilize renewable energy resources and green hydrogen, keeping in line with their respective ESG commitments to sustainability and energy efficiency.
The non-binding MoU also was signed by the companies to further collaborate in various industries such as renewable energy, hydrogen, and logistics. Both the parties are looking into the various options to cooperate and leverage the technical, financial, and operational strength of each company.
“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,” said Gautam Adani, Chairman of the Adani Group.
Jeong-woo, Choi, the CEO of POSCO called the partnership a “great synergy in the steel and environment-friendly business”. “ I hope this cooperation will be a good and sustainable business cooperation model between India and South Korea,” he added.
POSCO already runs a 1.8-million-ton cold-rolled and galvanized mill in Maharashtra, and four processing centers in Pune, Delhi, Chennai, and Ahmedabad. Meanwhile, the Adani Group recently announced a massive investment plan to become one of the world’s largest renewable energy companies.
POSCO and Adani also signed an MoU with the Gujarat government for support and cooperation.