South Korea-based steelmaker POSCO and Indian private steel company Mesco Steel will enter into a definitive agreement next month regarding the transfer of POSCO’s Finex plant to India, according to Indian media reports.
The parties signed a memorandum of agreement in March this year to move POSCO’s Finex plant No. 1 with an annual capacity of 600,000 mt located at the Pohang steel mill to Mesco Steel.
Mesco Steel is also planning to invest INR 135 billion ($2.1 billion) to expand its annual steel output capacity to 4.5 million mt.
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.