SAIL and POSCO Mulling Joint Venture, SAIL and POSCO Mulling Joint Venture Plant in Jharkhand, Steel Authority of India Limited and POSCO Will Talk on Joint Venture

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SME Times News Bureau | 18 May, 2010
The Steel Authority of India Limited (SAIL) and South Korean steel major POSCO are having talks on forming a joint venture plant in Jharkhand or Maharashtra and a working group of the two companies is finalising the details, SAIL chairman S.K. Roongta said Monday.

"We are in serious discussions with POSCO, which had expressed its willingness to enter into a JV with SAIL to establish a steel manufacturing unit... a ministry delegation led by steel secretary Atul Chaturvedi and myself went to South Korea recently to discuss with the CEO of POSCO," Roongta told reporters in Kolkata.

Roongta said SAIL and POSCO had signed a memorandum of understanding (MOU) in 2007 providing the two companies, if they mutually agreed, to take part in a joint venture. The two parties inked a follow-up MOU in 2009.

"Basically, the location being considered is Jharkhand and for a cold rolling mill in Maharashtra," said Roongta, who retires May 31.

He parried a query on the size of the proposed project saying it was being looked into.

"If the joint venture comes into effect then SAIL will have the benefit of the latest technology from one of the leading companies of the world," he added.

Asked whether there was any timeframe for clinching the deal, the SAIL chief replied: "If we make no progress in the foreseeable future it will not be taken forward".

He ruled out any plans to partner POSCO in the latter's Orissa project.

Apart from POSCO, steel majors like ArcelorMittal and Tata Steel have expressed interest in setting up JVs with SAIL, but the discussions were in the initial stages, he said.

Asked about the reasons behind the foreign companies wishing to tie up with SAIL, he said: "This is part of our business development. The foreign companies are interested in tie-up with SAIL considering the great potential in the growth and demand of steel in the country."