MMK seeks permission to setup plant in India

MMK seeks permission to setup plant in India

The board of Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) is currently holding discussions with the government of India's Orissa province to set up a steel plant in the province. MMK is seeking a permission to spend around $6.5 billion to set up a 10 million mt per annum capacity integrated steel plant. The government requires the preparation of the feasibility report in order to determine whether or not to give permission. Unlike other major steelmakers in Russia, MMK lacks raw material sources for its currently 12 million mt per annum production capacity. Therefore, the company plans to setup the plant in Orissa, the hub of iron ore in India. The South Korean Pohang Iron and Steel Industry (POSCO) is also planning to set up a plant in the province. MMK hopes to produce sheets and automobile components in the plant.