Pohang Steel Co (Posco) will begin construction work on Phase I of its 12 million tpa integrated steel plant in Orissa by April 2008. This phase, costing $3.7 billion will entail capacity of 4 million tpa, would be operational by December 2010. As per the original implementation schedule, Phase I was to commission by June 2010; the delay now arising out of change in project scope.

Phase I, as per the MoU signed with the Orissa government on 22 June 2005 was to be 3 million tpa, but has since been revised to 4 million tpa. The overall capacity would stand at 12 million tpa, with the project cost being $12 billion.

Posco's steel plant will deploy the Finex technology that has been developed by Posco. It is understood to be superior to the conventional blast furnace technology.

Phase I will produce 1.5 million tpa of steel slabs and 2.5 million tpa of hot rolled steel (valued added products).  Site preparation work at Jatadhari (plant site) is scheduled to begin by April 2007.

Posco has so far made capital investment of $51.3 million (Rs.220 crore) on the project since the time it signed the MoU in June 2005.

The 12 million tpa Posco project is likely to see the creation of 48,000 jobs. Its construction phase will create 467,000 man years of employment.

Also See:

Posco shortlists cos for mining operations (26-Oct-05)