Adani Group joins hands with POSCOIn a major deal, the Adani Group, led by trade mogul Gautam Adani, on Thursday, January 13, announced a tie-up with South Korean steel major Posco to explore business collaboration opportunities. This will include setting up of a green and eco-friendly integrated steel mill at Mundra, Gujarat, along with 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 impact of the deal on Atmanirbhar Bharat, saying it would give a boost to the scheme.
The deal is aimed at strengthening the high grade steel market position and increasing capacity in response to carbon reduction requirements, the press release said.
Here are 5 key things to know about the $5 billion Adani-Posco deal
i) The objective of this deal is to set up an eco-friendly steel mill in Mundra, 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 evaluation of a joint integrated steel mill at Mundra, Gujarat, based on POSCO’s state-of-the-art technology and state-of-the-art R&D capability. The Adani Group said in its press release that POSCO and Adani intend to use renewable energy resources and green hydrogen, in line with both partners’ ESG commitments to sustainability and energy efficiency.
iii) Both sides are examining various options to collaborate and leverage the technical, financial and operational strengths of each company, the Adani Group added.
iv) “POSCO and Adani have been able to come together in great synergy in steel and eco-friendly business with POSCO’s state-of-the-art steel making technology and Adani’s expertise in energy and infrastructure. I look forward to this collaboration between India and South Korea.” There will be a good and sustainable business cooperation model between the two countries.”
v) Speaking on the occasion, Gautam Adani, Chairman, Adani Group said, “We are delighted to announce a partnership with POSCO, the world’s most efficient and advanced steel maker in steel production and carbon reduction. This partnership will contribute to the growth of India’s manufacturing industry and the Atmanirbhar Bharat scheme run by the Government of India. It will also help strengthen India’s position in green businesses.”
In addition, POSCO and Adani have also signed a Memorandum of Understanding with the Government of Gujarat for support and cooperation from the government for cooperation.
At present, South Korean steel maker POSCO operates a 1.8 million tonne cold rolled and galvanized mill in Maharashtra. It is considered to be the most advanced automotive steel supplier in India. The company also has four processing
Centers in Pune, Delhi, Chennai and Ahmedabad. It is expected that this business collaboration between POSCO and Adani will bring about a major partnership synergy in the Indian steel industry.
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