Posco to invest Rs 1,000 cr more in Maharashtra facility
Saturday, July 03, 2021 2:27 PM







Rahul Wadke

Mumbai, July 3

South Korean steel giant Posco (NYSE:PKX) plans to expand its projects in Raigad district of Maharashtra, with three more units, at an investment of over Rs 1,000 crore.

One of the three units — a specialised steel mill — would be set up jointly with Steel Authority of India Ltd.

In March, after two years of negotiations with MIDC, Posco broke ground for its first facility at Vile Bhagad in Raigad, where it will invest Rs 4,000 crore. The continuous galvanised line plant with hot-dip facility has an annual production capacity of 4.5 lakh tonnes.

Products

The plant will produce zinc-galvanised steel sheets for automobiles and electronic goods and zinc galvanised-alloy steel products for local and other overseas markets. Cold-rolled coil products would be supplied from Posco's Gwangyang plant in South Korea and its facility in Vietnam. Construction is scheduled to be completed by May 2012.

The company is now planning expansion at the same location and at Palasgaon nearby, a senior Maharashtra Government official told Business Line. The State Government would provide additional land for the expansion.

JV with SAIL

The company has established a joint venture with SAIL for a wide range of commercial interests. They have signed an memorandum of understanding for the manufacture and commercialisation of Cold Rolled Non-Oriented steel.

The joint venture unit could either be set up at Vile Bhagad or Palasgaon.

The venture will also explore opportunities utilising FINEX technology developed by Posco for iron-making process. The technology allows direct use of iron ore fines and non-coking coal as feedstock in iron-making.

In June, Posco commenced construction of a new distribution centre near Dighi Port, which will handle all the finished products from the Ville Bhagad plant.

The centre will open in December with four cranes spread over a 33,058 sq m space and it is expected to handle 360,000 tonnes of steel products a year.





 

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