Odisha Sun Times Bureau
Bhubaneswar, July 17:
South Korean steel major Posco, which has so far failed to make headway in its proposed port-based steel plant near Paradip , is now planning to set up a 6 lakh ton steel plant in Odisha, sources said today.
The company has already signed a memorandum of understanding (MOU) with Mesco, the sources said, adding, the new steel plant will be built within the premises of the Mesco Steel’s Kalinganagar unit using Finex steel making technology.
Posco will be dismantling and shifting its 6 lakh ton steel unit which uses Finex process for producing steel, from South Korea to Odisha, sources informed.
Posco holds the patent for Finex steel making process which produces high quality steel using low grade iron ore and doesn’t even require coking coal for producing steel.
The unit which will be shifted to Odisha was Posco’s pilot unit using such technology in South Korea.
Earlier, Posco had held negotiations with Steel Authority of India (SAIL) for setting up the plant in the latter’s Bokaro unit. However, a final agreement was never reached.
Posco, which was looking for a partner in India, has ended up signing an MOU with MESCO in this regard.
The new unit will augment MESCO’s production capacity, which is 12 lakh ton at the moment. However, share holding pattern of Posco and Mesco in the deal is presently under wraps.
With the Posco’s Paradip unit getting delayed, the steel behemoth has found out a new route to start its production in Odisha.