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Date: 2019-09-30
Business
Various firms across the world are turning towards India for the establishment of their operations in the country. India has plenty of raw materials as well as favorable regulatory environment for production. The country has a lot of manpower which eventually makes it a favorite for global companies to consolidate its presence through partnerships and joint ventures.
POSCO, a renowned South Korean steel manufacturing firm headquartered in Pohang, South Korea, is reportedly continuing to explore its possibility of forming a joint venture (JV) with RINL, an integrated steel producer at Vishakhapatnam, India.
POSCO officials had recently held a meeting with RINL’s (Rashtriya Ispat Nigam Limited) management, which is also known Vizag Steel, regarding the JV plans.
POSCO has struggled previously on its plans to establish its own plant in India due to an issue in land acquisition, but the steel giant is turning towards India once again, however, this time through a joint venture with RINL.
The South Korean steel giant is looking to make the joint venture with Visakhapatnam based RINL to manufacture a special and value-added grade of steel. In fact, according to trusted sources, POSCO officials have paid a visit to RINL thrice since January 2019.
POSCO has had an interest in India for a long time now. Earlier, the steel giant had proposed to build a 12 MTPA project at Jagatsinghpur, Odisha at an estimated cost of INR 52,000 crore.
An MoU was also inked between the Odisha government and POSCO regarding the plant in 2005 but company’s goal of setting up a plant couldn’t be complete due to various reasons.
According to sources, POSCO officials have met Secretary of Steel Binoy Kumar recently in July, submitting a proposal for investment in the steel sector.
The RINL plant of 7.3 million tons based in Visakhapatnam is an integrated steel plant based on shore. This RINL plant approximately covers an area of more than 22,000 acres and has access to Gangavaram Port, which is where of various raw materials arriving including coking coal.
As RINL is situated at India’s eastern coast, a joint venture plant at that location would provide access to various South East Asian markets besides supplying the domestic requirements of special steel through road and rail.
Source credit: https://www.moneycontrol.com/news/business/south-koreas-posco-continues-exploring-jv-possibility-with-rinl-in-visakhapatnam-4486441.html