Shree Uttam Steel and Power and South Korean steel giant Posco have signed an agreement to set up a three million tonne per annum integrated steel manufacturing company in Maharashtra, with an investment of $3 billion (₹19,200 crore).
The proposed JV plans to set up 3 million tons per year (MTPA) integrated steel plant at Satarda in Maharashtra in two phases. Ankit Miglani, deputy managing director at Uttam Galva, told TOI, “This world-class integrated steel manufacturing facility will be developed in two phases”.
In 2009-10, ArcelorMittal had bought a significant minority stake in Miglanis’ public listed firm Uttam Galva Steels Ltd, bulk of it through an open offer from the public shareholders.
Reacting to the news, Uttam Galva shares saw a spurt in volume on BSE and the company stock was up 8.98 per cent at Rs 41.25 in the afternoon trade.
Shree Uttam Steel & Power is fully owned by the Miglani family.
Miglani said the funding would be done through a mix of debt and equity in the 2:1 ratio.
“We have been associated with POSCO across various aspects of the steel business over the years”.
The key factor in choosing Sindhudurg as the project site was because of its proximity to Goa, which has huge iron ore reserves.
The agreement was signed in Mumbai today.
Last month, the steel giant Posco said it has shifted its focus from the $12-billion proposed steel plant in Odisha, citing “no progress” in the project.
“This JV will help us to develop a world class integrated steel manufacturing facility in line with the with the government’s “Make in India” initiative”, he said. Shree Uttam Steel and Power has so far invested about Rs 1,000 crore in the project, they added.
Posco also has its 2mt value-added steel making unit at Raigad in Maharashtra where it uses HR coils to produce galvanised and galvannealed steel used in automobiles and consumer durables.
The Company’s manufacturing facilities are located at Khopoli, in the state of Maharashtra, India, which are close to both Nhava Sheva and Mumbai ports.