POSCO, Adani Group to invest $5 bn in green projects
Published On: Thursday, January 13, 2022 | By: Team KnowMyStock
POSCO and the Adani Group together will be investing up to $5 billion and have agreed to explore business cooperation opportunities, including the establishment of green, environment-friendly integrated steel mill at Mundra, Gujarat, as well as other businesses. The non-binding MoU signed between POSCO and Adani will see further collaboration at the group business level in various industries such as renewable energy, hydrogen, and logistics in response to carbon reduction requirements. Both the 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, said Adani in its release.
POSCO and Adani intend to utilise renewable energy resources and green hydrogen, in line with both partners’ ESG commitments to sustainability and energy efficiency.
“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,” the release quoted Jeong-woo Choi, chief executive officer at POSCO, as saying.
The Adani Group is the largest and fastest-growing portfolio of diversified businesses in India with interests in logistics (seaports, airports, shipping and rail), resources, power generation and distribution, renewable energy, gas and infrastructure, and other sectors. Adani has recently announced a massive investment plan to become the world’s largest renewable energy company and produce green hydrogen in the future.
“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 of the Adani Group, was quoted as saying.
POSCO operates 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.
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