Two steel giants, POSCO and Shree Uttam Steel & Power have signed a Memorandum of Association (MoA) to set-up a 3 MnT pa integrated steel plant at Satarda, Maharashtra.
MoA is the first step in establishing joint venture. Shree Uttam Steel and Power is a part of Uttam Galva Steel, which has partnership with global steel giant Arcelor Mittal (33.80 percent stake in Utaam Galva Steel is held by ArcelorMittal). Thus, the joint venture will bring two global players, POSCO and Arcelor Mittal together.
POSCO, Indonesia is world’s 6th largest steelmaker and has steel processing centers in Pune, Chennai and New Delhi. While, Utaam Galva Steel is one of the largest cold rolled steel and galvanized steel manufacturer in western India.
The two steel giants were in talks for setting up of steel plant since 2013. However as reported, POSCO, earlier planned to set up 12 MnT pa steel plant in Odisha and thus Satarda, Maharashtra plan was kept on hold. But, due to land and mines acquisition problems in Odisha, the project was recently scrapped and POSCO finalized its deal with Uttam Galava.
Uttam Galva already owns 1,700 acres of land in the proposed site so land acquisition is not a problem in proposed project. 1 MnT pa plant requires an investment of about USD 1 bn but the total investment that will be involved in the same is not disclosed.
The project is expected to be completed in two phases. However, time-line for completion of project is still not yet reported. The plant is being set up looking at the big picture of steel requirement in long term because of ‘Make in India’ plan announced by the Indian government. The project will also contribute to employment generation in the area of project site.
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