Though its dream project, with an investment of $10 billion, is still limping after a six-year delay in Orissa, Korean steel major Posco has not lost its focus on the processed steel market for the growing electrical and automobile sectors in India.
The company is starting its new facility in Hyderabad tomorrow.
Built with an investment of $7.5 million in 10 months, the facility would cater to the sizeable electrical transformer industry in Hyderabad through the supply of electrical-grade, cold-rolled steel laminations to customers like Vijay Electricals.
With this new unit, Posco will be having half-a-dozen plants spread across Delhi, Chennai, Pune and other centres with investments ranging between $4 million and $19 million. These units handle processing of electrical and automotive steel sheets and manufacturing of cores for transformers.
The company already supplies automotive steel sheets to companies like Maruthi, General Motors and Nissan.
A state government official said that the execution of the Hyderabad project was a low-key affair, considering the size of the investment. The company is investing another $10 million in other such facilities, according to the official.