Indian private-sector conglomerate Adani Group has signed an initial deal with South Korean steelmaker Posco to set up a green integrated steel mill at Mundra, Gujarat.
The non-binding initial deal will also explore other business opportunities including renewable energy, hydrogen, and logistics in response to carbon reduction requirements, they said today, adding that the investment is estimated to be around $5bn.
Both the firms have signed an initial deal with the government of Gujarat as well, although they did not specify any timeline for the project.
"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," Posco's CEO Jeong-woo, Choi said.
Posco runs a 1.8mn t cold-rolled and galvanised steel mill in the state of Maharashtra and has four processing centres in Pune, Delhi, Chennai and Ahmedabad. The steelmaker had shelved its plans to set up a greenfield 12mn t/yr steel plant in Odisha, after more than 10 years of delays to the project.
Adani Enterprises set up a subsidiary Adani Petrochemicals last year to invest in refineries, petrochemical complexes, specialty chemical units, hydrogen and related chemical plants.
