South Korean steel company Posco and India’s Mesco Steel signed a memorandum of agreement on Tuesday for a Finex technology plant of the former to be relocated to India, senior executives in the companies confirmed.
“It is true that an MoA has been signed... Details will be announced later,” Manish Pande, vice president—strategy of MESCO said.
The spokesperson of Posco IG Lee confirmed the development via a text message without giving further detail.
“An MoA has been signed today and the companies are in talks for the formation of a joint venture,” a senior official in Mesco said without wishing to be named.
The unnamed official in Mesco said Posco is likely to take a minority stake in the plant that will be dismantled in Pohang in South Korea and rebuilt at Mesco’s plant site in Kalinganagar in Odisha, according to plans.
Last year the two companies signed a memorandum of understanding to explore the possibility of the transfer of the plant and the environment friendly technology which will lower the cost of steel production as it can directly use iron ore fines and thermal coal.
An analyst said the two companies are pushing ahead with their plans despite the lean phase in the steel market because Posco is eager to showcase its technology that it believes is best suited to Indian conditions.
Mesco on the other hand is keen to get the low-cost steel making technology first.
Source: live Mint