| Posco, one of the major steel makers in the world, is eyeing growth opportunities in India. The company is planning to set up a 3-million tonne plant in Orissa and is in talks with the state government, according to industry sources. |
| The company, which has a capacity of 28 million tonnes, stated in its annual report recently that India figured prominently in its global production strategy and was second only to China in terms of growth opportunities. |
| A questionnaire mailed to Posco, however, went unanswered. A team from Posco is expected to visit Orissa shortly. |
| Posco said it would try to gain investment experience by establishing a local presence through small-scale processing centres. Such a move will allow it to gauge local market trends in the near-term. |
| Posco has been eyeing locations with abundant natural resources like India and Southeast Asia. Posco plans to invest 9.3 trillion won over five years from self-generating cash flows, of which 15 per cent will be in overseas steel manufacturing units. Around 80 per cent will be invested in local steel plants and the remaining in sectors other than steel. |
| In an interview to a Korean publication, Posco CEO Ku Taek Lee said the company would shift its headquarters to India in 20 years if the country emerged a global steel-making hub. |
| Posco, however, is not the only company to pursue growth opportunities in India. The world's largest steel maker, Arcelor, has also been eyeing the Indian market. |
| With the government drawing up an infrastructure development plan, the steel ministry has set a production target of 60 million tonnes by 2010 and 100 million by 2020. Domestic steel majors like the Steel Authority of India and Tata Steel have already announced plans of ramping up capacity over the next few years. |
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