Steel Authority of India (SAIL) on Sunday said it has entered into a strategic agreement with POSCO
for wide-ranging technical services for its IISCO Steel Plant
(ISP) at Burnpur to assist in realising the benefits from the company's new plant.
Under the agreement, POSCO
will provide technical supervising service, including its know-how relating to operation and maintenance of coke-making, iron and steelmaking, continuous casting process, cold dust injection (CDI) operation and wire-rod mills.
SAIL-ISP, which has already completed its modernisation and expansion, is ramping up production from its new facilities and the 0.55 million tonnes wire rod mill of SAIL-ISP shall soon be producing wire rods in special grades to meet both domestic and international requirements, an official statement said.
This agreement, which SAIL and POSCO had entered in November 2016,
is a result of an earlier memorandum of understanding (MoU) on technical collaboration for operational improvement and human resource development.
This technical agreement will pave the way for sharing of best practices in the area of technology and maintenance that will immensely benefit SAIL-ISP in reaping benefits from its modernised units faster, SAIL
Chairman P K Singh said.
Earlier in May 2015, SAIL
entered into an MoU to explore the possibility of setting up an auto grade steel manufacturing facility under a joint venture in India.
The Rs 5,000-crore auto grade steel plant
is expected to be set up close to an automobile hub.
However, the two companies
are yet to sign a commercial agreement and are also yet to finalise the location for the plant.
A task force team comprising representatives from both SAIL
has been working on detailed due diligence and preliminary feasibility study and all other issues for setting up a joint venture plant.
The much-awaited JV between steel giant ArcelorMittal
and state-run SAIL
will also focus on producing specialised grade steel products for defence, space, among others.
The proposed JV will construct a cold-rolling mill and other downstream finishing facilities in India, touted as one of the fastest-growing automotive markets in the world with production expected to double between 2014 and 2020, from 3.6 million units to 7.3 million units.