South Korean steelmaker POSCO has announced that it will move its Pohang steel mill`s Finex plant No. 1 with an annual capacity of 600,000 mt to the Indian private steel company Mesco Steel. POSCO and Mesco Steel signed a memorandum of agreement on March 24 in Delhi in regard to the movement and installation of the Finex plant.
According to POSCO, the Finex plant No. 1, which was in operation from 2003 up to the end of 2014, allowed POSCO to succeed in completing the second and third Finex plants with an annual capacities of 1.5 million mt and 2 million mt respectively.
Mesco Steel is a private company with its own mine that was established in 1992 and which today mainly produces and sells pig iron. Once Mesco Steel brings the Finex plant No. 1 online, it will secure iron making facilities with which it can produce pig iron with ore from its own mine, and have a self-sufficient integrated system from raw material supply to product production.
The Finex technology allows for the use of low-cost iron ore fines and non-coking coal and reduces hot metal production costs by approximately 15 percent compared with the blast furnace method.