Adani Group and South Korea's largest steelmaker POSCO have agreed to explore business cooperation opportunities and jointly invest $5 billion in green projects in India.
The proposed investment include establishment of a green, environment-friendly integrated steel mill at Mundra, Gujarat, as well as other businesses, according to a joint statement released by the two companies on Thursday.
"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," it said.
Both parties are examining various options to cooperate and leverage the technical, financial, and operational strengths of each company.
The collaboration includes evaluating a joint Integrated Steel Mill at Mundra, Gujarat, based on POSCO's state-of-the-art technology and cutting-edge R&D capability. POSCO and Adani intend to utilise renewable energy resources and green hydrogen, in line with both partners' ESG commitments to sustainability and energy efficiency.
"We are very pleased to announce the partnership with POSCO, the world's most efficient and advanced steel manufacturer, in steel production and carbon reduction. This partnership will contribute to the growth of India's manufacturing industry and the Aatmanirbhar Bharat scheme championed by the Government of India. It will also help to strengthen India's standing in green businesses," Gautam Adani, Chairman, Adani Group, said in a statement.
POSCO runs POSCO-Maharashtra, a 1.8-million-ton cold-rolled and galvanized mill regarded as the most advanced automotive steel supplier in India, and four processing centres in Pune, Delhi, Chennai and Ahmedabad. It is anticipated that this business cooperation between POSCO and Adani will bring dominant partnership synergy in the Indian steel industry.
POSCO and Adani have also signed an MoU with the Government of Gujarat for support and cooperation from the Government for the collaboration.
Jeong-woo, Choi, the CEO of POSCO, said, "POSCO and Adani are able to come to great synergy in the steel and environment-friendly business with POSCO's state-of-the-art technology in steel making and Adani's expertise in energy and infrastructure. I hope this cooperation will be a good and sustainable business cooperation model between India and South Korea."
( With inputs from ANI )
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