Bhubaneswar: South Korean steel maker Posco is planning to set up a steel plant in Kalinganagar of Jajpur district jointly with Mesco Steel, said sources on Thursday.
Posco has already signed a memorandum of understanding with Mesco Steel for the project.
Sources added Posco will dismantle a 6 lakh tonne Finex technology steel plant in South Korea and shift it to Mesco’s plant site in the state.
Once the new plant starts manufacturing, the company plans to integrate it with other processing plants spread in several locations in India.
Through the Finex technology the company would use low-grade iron ore fines to produce steel without importing coking coal. Informed sources said this would reduce the steel production cost of the company in a big way.
Meanwhile, Posco’s 12 metric tonne green-field plant in Paradip is getting delayed as it was conceived in 2005.