Reaching Out
POSCO is holding hands with local companies for business expansion in the Indian market. The idea is to make a breakthrough with its steel mill construction in Odisha, that has been at a stalemate for 10 years. Specifically, it is going to cooperate with Uttam and state-run steelmaker SAIL.
POSCO signed an MOU with the state government of Odisha in 2005 to build a steel mill with a capacity of 12 million tons at an investment of US$12 billion. However, local residents have been opposed to the construction due to environmental concerns, and the state government has refused to give iron ore and coal mining rights as well, hampering the progress of the project for 10 years.
Under the circumstances, POSCO Chairman Kwon Oh-joon visited India in January this year and met with Prime Minister Narendra Modi to ask for cooperation. The Prime Minister said in response that he would do his best for the resumption of the project.