POSCO invests $51.3 million in India project
Bhubaneswar, Feb 25: POSCO, South Korean steel major, has so far made a capital investment of 51.3 million US dollar ever since it had signed the MOU with the Orissa government for setting up of a steel plant at Paradip at an estimated cost of 12 billion US Dollar.
The company has applied for prospecting license for three areas in last September while the proclamation of the government land amounting to 3,556 acres was announced in November last. The notification for the private land, for the steel plant, is expected to be published soon.
POSCO-India's steel plant project is considered as the largest Foreign Direct Investment (FDI) in India and is a significant part of the company's strategy to enhance its global competitiveness.
A POSCO release issued here today said India will see significant benefits from the project with the creation of nearly 48,000 jobs in the region and 467,000 man years of employment during the construction phase.
A total of US$ 278.6 billion is the projected economic effect of the project, if one considered the taxes and royalty incomes for the central government, as well as the government of Orissa.
Meanwhile, in a landmark decision, POSCO, has announced the appointment of its India Managing Director Soung-Sik Cho as Standing Director in the POSCO Board.
This would be the first time in the 38-year history of POSCO that a head of overseas subsidiary has been appointed a board member.
Mr Cho, who joined POSCO in 1974, has also been promoted as Senior Executive Vice President in the company. Mr Tae-Hyun Jeong, the Deputy Managing Director of POSCO-India has also been promoted as Vice President of POSCO.
The 38th Share holders Meeting held at the POSCO Center in Seoul yesterday also announced a slew of management realignments in order to improve efficiencies, lent greater transparency and enhance corporate governance within the organization. ad POSCO's global growth.
According to POSCO Chairman Ku-Taek Lee the year 2005 saw POSCO registering a record performance stepping up domestic investments.
''Our vision is to be a continually growing, globally superior enterprise and we will aim for a 35-million ton production base in Korea.'',he added.
Mr Lee said the company would do its best to be the leading centre of the steel industry by making structural changes in the global steel industry. The Progress in investments in India and China would form the bedrock for our global growth, he added.