After 12 years of pushing to establish an integrated steel plant in Odisha in eastern India, POSCO returned some of its land sites to the Indian government. This move came after POSCO failed to win the right to develop an iron ore mine from the Indian government and local residents are opposing to the construction of a steel plant for its possible damage to the environment.
Accordingly, POSCO's long-aspired dream of building an integrated steel plant in South Asia appears to be fading away.
According to industry sources on March 19, POSCO's Indian unit submitted an official letter to the Indian government, saying that it may return its land site which has remained idle, if the Odisha state government wants.
POSCO officials said, "It doesn't mean that we gave up our attempt to build the integrated steel plant. We are just ready to return a specific area of the site that's not needed for the plant's construction."
Back in 2005, POSCO announced a plan to build an integrated plant in Odisha by investing $12 billion. Through the plant, the Korean steel maker aimed to produce hot-rolled steel sheets using iron ore it can procure within the country.