Posco’s Finex plant to come to India in 2016
The move will give India access to a new technology that can substantially lower steel-making costs
Mumbai: South Korean steel company Posco will move its Finex technology plant to India from Pohang in South Korea next year, giving India access to a new technology that can substantially lower steel-making costs, according to an executive in Mesco Steel which is buying the plant.
“The process of dismantling should start by the next quarter and plant will be shifted sometime next year," said Manish Pande, vice-president—strategy at Mesco Steel. “Posco will take a minority stake in the venture."
On Tuesday, Pande had confirmed that the two companies had signed the memorandum of agreement (MoA) and a senior executive in Mesco said that the companies were in talks to give shape to their upcoming joint venture.
Posco has been doggedly pursuing its India plans despite its 12 million tonne, $12 billion-plan to build a steel plant in Jagatsinghpur district of Odisha having been stranded for nearly 10 years owing to social protest.
The company has built several processing plants in India where it is customising steel for its Indian clients after importing steel rolled coils from its South Korean plant. A manufacturing plant will give the company the much-desired backward integration.
Pande did not disclose the price of the plant that has a capacity to produce 600,000 tonnes of steel.
Finex technology may involve a large expense, but it can use thermal coal and iron ore fines, both of which are available in India, and therefore offer a lower cost of production.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!