POSCO signs deal with Shree Uttam Steel and Power to set up steel plant in Maharashtra

KOLKATA: Shree Uttam Steel and Power Ltd, part of Uttam Galva Group and Korea’s steel giant POSCO have signed a Memorandum of Agreement (MoA) to set up an integrated steel plant in India. The MoA, which was signed in Mumbai on Tuesday, would be the first step of a process to establish a joint venture (JV) between the two companies. The proposed JV plans to set up 3 million tonne per annum (mtpa) integrated steel plant at Satarda in Maharashtra due to come up in two phases.

For POSCO, which has been facing an almost 10-year delay in setting up its own greenfield steel unit in Odisha, this will be the first joint venture in the country for a greenfield steel plant.

Commenting on the development, Ankit Miglani director, Uttam Galva said: “We have been associated with POSCO across various aspects of the steel business over the years. Today’s signing signals our intention to further advance our collaboration with POSCO to a higher level on the value chain. Also we feel that the future of the Indian steel Industry is bright and we are poised to as a nation make a quantum leap on the global steel stage. This JV will help us to develop a world class integrated steel manufacturing facility in line with the government’s ‘Make in India’ initiative. We hope to with POSCO’s technical support create an integrated steel plant that will be a centre of manufacturing excellence”.

Shree Uttam Steel & Power Ltd is fully owned by the Miglani Family who are the co-promoters along with ArcelorMittal of Uttam Galva Steels Limited. The latter is one of the largest manufacturer-exporter of value added steel products in India.

Earlier this year POSCO inaugurated its state of art $ 709 million Cold Rolling Mill in Mangaon, Maharashtra with 1.8 mtpa capacity.