“Shifting its focus from upstream to downstream manufacturing processes with processed materials”.
Odisha’s mines minister, Prafulla Kumar Mallik, said his government remained keen to help POSCO, but had not heard from the company. Until Indian Prime Minister Narendra Modi “offers better deals, we won’t resume and for now we will head to the west and do more downstream work”, he said, referring to a plant the company operates in the state of Maharashtra.
The development, in fact, has already triggered speculations in different circles in the state that the South Korean company is on his way out of Odisha scrapping its much awaited project. “It was decided to renovate the office space to a smaller area”.
The drop followed Posco’s announcement Wednesday of restructuring plans, including reducing the scale of domestic and overseas production lines and suspending its attempt to launch a factory in eastern India.
Posco has been facing problems regarding its mega project in Odisha on account of delays in raw material security, land acquisition as well as other clearances. Posco’s 12-million ton-a-year Odisha project, which was the nation’s biggest foreign investment, failed to take off since 2005 because of opposition from local farmers and the failure to secure iron ore mining leases, initially promised for free to the company.
Neither the Odisha government nor officials of the Steel and Mines Ministry at the Centre have formal intimation of Posco’s position, after it failed to win captive mining rights to an iron ore reserve.
A person closely connected in official capacity with Posco Odisha project said that steel plant is on hold and the company was not going ahead with it. The situation was being reviewed.
The proposed plans, dubbed “Innovative POSCO 2.0”, include revamping business portfolios, disclosing the names of those behind major investment and mergers and acquisitions decisions for higher responsibility and enhancing personnel management transparency.
Even though companies such as Samsung Electronics (005930.KS) and LG Electronics (066570.KS) have continued to sell products in Iran, South Korean exports to the country fell to $4.16 billion previous year from $6.26 billion in 2012, according to the Korea worldwide Trade Association. “It is now for POSCO to decide if they want to participate in the auction”.