Posco is looking for new opportunities and has now teamed up with SAIL to set up an around Rs150bn steel plant in Jharkhand, according to reports. Posco is likely to hold 60% stake in the joint venture while the rest could be with SAIL. The plant’s capacity could be increased to 3-4mn tons at a later stage.
There will be no cash transaction in buying the equity. SAIL will provide the land and Posco will put in the required investment and the technology for the plant to manufacture steel which will be further taken by SAIL for making special products like a utograde steel, the report stated.
Posco’s Rs540bn plant in Orissa has failed to take off for the past over four years mainly due to problems in acquiring land. Meanwhile, Posco had been looking for opportunities in states like Jharkhand, Karnataka and Maharashtra.