POSCO into India

South Korea’s steel giant POSCO has set up its Indian subsidiary to build a 12 million tonne steel plant in Orissa. The company had signed a deal with the Orissa government for the plant in June.

POSCO, the fifth largest steel company in the world, has incorporated its Indian subsidiary POSCO-India Pvt Ltd with the Registrar of Companies, Orissa.

A total of about 80 people would be employed initially to carry out POSCO’s India operations, of which 50 would be Koreans, and 30 Indians would be recruited this year.

The first phase of the project would operate with an authorised capital of $1.2 billion, which would be invested in the company’s maiden Indian steel plant of three million tonne capacity.

POSCO’s-India’s steel plant is the largest foreign direct investment project in the country and is a significant part of its strategy to enhance its global competitiveness. The total investment proposed is $12 billion.