The two companies, India’s JSW steels and South Korea’s POSCO- are to invest 650 billion rupees ($7.73 billion) in a plant in India in the coming years, partially to capitalize on rising steel demand in the world’s fastest-growing major economy.
JSW Steel and POSCO have signed an agreement to set up an integrated steel plant with a capacity of 5 Million metric tons capacity a year. The plant is to be located in Eastern Odissa, known for its iron ore reservoirs.
Sources familiar with the matter said that they will initially invest 200 billion rupees in the plant, expected to be set up by next year.
Many MNCs have now turned to India for supply chain, as the demand for the steel has surged up for the construction and Manufacturing Industry. This is expected to provide, India an economic boom.
As per Sources, the total investment is expected to reach $7.73 billion after operating for three years, with the companies raising production capacity to 18 million metric tons, who, according to Reuters, did not wish to be named as they were not authorized to talk to the media.
The companies have not provided any official statement yet.