Adani Group Joins Hand with POSCO: In a major deal, the Adani Group, led by business mogul Gautam Adani, on Thurday, January 13, announced a tie-up with South Korean steel making major POSCO to explore business cooperation opportunities. This would include the establishment of a green and environment-friendly Integrated Steel Mill at Mundra in Gujarat, as well as other businesses. The investment is estimated to be up to $5 Billion, the Adani Group said in a press release. The company’s chairman Gautam Adani also stressed on the deal’s effect on Atmanirbhar Bharat, saying that it will boost the plan.
The deal is aimed at strengthening high-grade steel market position and enhancing capability in response to carbon reduction requirements, said the press release.
Here are 5 Key Things to Know About the $5 Billion Adani-POSCO Deal
i) The deal aims to establish an environment friendly steel mill at Mundra in Gujarat. The non-binding MoU signed between POSCO and Adani intends to further collaborate at the group business level in various industries such as renewable energy, hydrogen, and logistics in response to carbon reduction requirements.
ii) The collaboration includes evaluating a joint Integrated Steel Mill at Mundra, Gujarat, based on POSCO’s state-of-the-art technology and cutting-edge R&D capability. POSCO and Adani intend to utilise renewable energy resources and green hydrogen, in line with both partners’ ESG commitments to sustainability and energy efficiency, the Adani Group said in its press release.
iii) Both parties are examining various options to cooperate and leverage the technical, financial, and operational strengths of each company, added the Adani Group.
iv) “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, cheif executive officer at POSCO.
v) Speaking on the occasion, Gautam Adani, chairman of the Adani Group said, “We are very pleased to announce the partnership with POSCO, the world’s most efficient and advanced steel manufacturer, in steel production and carbon reduction. 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.”
Apart from this, POSCO and Adani have also signed a MoU with the Government of Gujarat for support and cooperation from the Government for the collaboration.
At present, South Korean steelmaking major POSCO runs a 1.8-million-ton cold-rolled and galvanized mill in Maharashtra. It is regarded as the most advanced automotive steel supplier in India. The company also has four processing
centres in Pune, Delhi, Chennai and Ahmedabad. It is anticipated that this business cooperation between POSCO and Adani will bring dominant partnership synergy in the Indian steel industry