Adani-POSCO sign MoU to set up integrated steel mill in Gujarat
MoU for comprehensive co-operation to strengthen high-grade steel market position and enhance capability in response to carbon reduction requirements. Group-level coopera...
- MoU for comprehensive co-operation to strengthen high-grade steel market position and enhance capability in response to carbon reduction requirements.
- Group-level cooperation across sectors like integrated steel mill, raw material, renewable energy, hydrogen, logistics, and other businesses.
Gautam Adani-led Adani Group has signed a pact with South Korean steel major POSCO to explore business opportunities, which would include setting up of an integrated steel mill in Mundra, Gujarat with an estimated investment of up to $5 billion.
Through the non-binding agreements, the two companies also intend to further collaborate at the group level in other businesses like renewable energy, hydrogen, and logistics that are aimed towards carbon reduction.
"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," said Jeong-Woo Choi, chief executive officer, POSCO.
The companies said that they intend to use renewable energy resources and green hydrogen, in line with their respective environmental, social and governance (ESG) commitments to sustainability and energy efficiency. They are examining various options to cooperate and leverage the technical, financial, and operational strengths 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.