POSCO to Build Cold Rolling Mill in India

POSCO announced on Friday the firm will build new cold rolling mill with annual 1.8 million tonnes of output capacity in Maharashtra, India. The firm starts the construction work in 2011 completing the plant in December 2013 to make high valued cold rolled flat steel including automobile steel for Indian market. The firm tries to follow growing Indian demand through the supply network including new continuous galvanizing line and processing facilities.

The firm apparently invests US$ 600-700 million for the cold rolling mill in Vile Bhagad industrial area, Maharashtra while the firm didn’t disclose the investment value. The cold rolling mill uses hot band from planned No.4 hot strip mill at Gwangyang and other existing mills in South Korea.

Many Indian manufacturers have operations in Maharashtra when the automobile output represents 45% for total production in India and the appliances output represents 40% for total production in India. The new cold rolling mill is located in the middle point of existing processing center in Pune and existing distribution base at Dighi port. The firm started the construction of new continuous galvanizing line with 450,000 tonnes of output capacity in September to launch May 2012.

POSCO expects Indian cold rolled flat steel demand will grow by annualized 12.5% through 2018. The firm expects the automotive flat steel demand will be short at 850,000 tonnes in 2015 and at 1.78 million tonnes in 2018. The firm tries to secure the market through the local plants and operations.

POSCO has offshore cold rolling plant joint ventures including US venture with US Steel, Chinese venture with Benxi Iron & Steel and Thai venture with Nippon Steel. The new Indian plant is second plant as POSCO’s controlling carbon cold rolled flat steel plant after Vietnamese plant.