Posco, LG plan steel processing arm in Pune

Even as its 12 million tonne steel project in Orissa is waiting to take off, South Korea's Pohang Steel Company, the world's fifth largest steel maker, has finalised plans to invest $14.5 million to set up a steel processing centre at Pune in Maharashtra.

"We have planned to invest $14.5 million to set up a Posco India Processing Centre along with LG Corporation also of South Korea at Pune. Our company would own 65 per cent stake in the joint venture," a top Posco official told PTI in New Delhi on Tuesday.

All about India's biggest FDI project

Posco's move is aimed at expanding its presence in the fast emerging markets. The new firm would process electrical steel coil and sell the products in Indian markets, the official said.

Following virtual saturation in South Korea, the company is seeking to register its presence in growing Asian economies like China and India.

Meanwhile, the company is busy finalising plans for its mega steel plant project at the coastal town of Paradip in Orissa and has asked the Naveen Patnaik government to allocate mines to it for captive use in Keonjhar and Sundergarh districts and allocate land for setting up the plant and townships.

The South Korean steel giant would also construct a port at Jatadhari, 12 kilometres from Paradip entirely for ensuring its logistics supply.