India’s Shree Uttam Steel and Power Ltd., a subsidiary of the Uttam Galva Group, said it signed an agreement with South Korea’s biggest steelmaker Posco to build a steel plant in Maharashtra state.
Under the proposed joint venture, the two companies would set up the plant, producing 3 million metric tons a year, in the western Indian state in two phases, Shree Uttam said in a statement.
The company has land, rail and water resources in place for the project and hopes to start work on the site probably a year from now, Ankit Miglani, a non-executive director at another Uttam Galva Group company, Uttam Galva Steels Ltd., told Bloomberg TV India in an interview.
The proposed venture would help Posco’s expansion in India after a decade-long delay to its $12 billion investment in a steel, port and mine project in the eastern Indian state of Odisha. The steelmaker “tentatively postponed” the project, touted as India’s biggest foreign investment, due to the lack of an iron ore mine to feed the plant.
Shree Uttam Steel is owned by the Miglani family. They are also co-owners of Uttam Galva Steels, with ArcelorMittal holding 29 percent of the company.
Uttam Galva Steels surged as much as 18 percent, the biggest jump since Jan. 2012. As of 12:45 p.m. in Mumbai, it was up 9.9. percent at 41.50 rupees.