Steel maker ArcelorMittal Nippon Steel India (AM/NS India) on Friday announced signing a pact with POSCO Maharashtra Steel, under which the former will supply hot rolled coils (HRC) worth Rs 5,000 crore in 2021.
While AM/NS India is a 60:40 joint venture between Luxembourg-based ArcelorMittal and Japan''s Nippon Steel, POSCO Maharashtra Steel is the Indian subsidiary of South Korean steel major POSCO.
"AM/NS India has signed a Rs 5,000 crore memorandum of understanding (MoU) with POSCO Maharashtra Steel to supply Hot Rolled Coils (HRC) in 2021. Sixth such agreement between the two companies since 2015," AM/NS India said in a statement.
As part of the agreement signed on January 27 in Mumbai, AM/NS India and POSCO Maharashtra Steel will also jointly work to enhance the quality of current grades and develop new value-added grades to provide the best quality and state-of-the-art steel products and solutions to consumers.
AM/NS India Chief Executive Officer Dilip Oommen said, "POSCO Maharashtra Steel has been a valued customer for years and this MoU further strengthens our relationship with a promise to deliver smarter and better steel. We strive to deliver high-quality HRC on time to POSCO Maharashtra Steel, thereby enhancing our contribution towards a self reliant India mission."
POSCO Maharashtra Steel Chief Managing Director Sung Lae Chun said, "The MoU with AM/NS India is...an ideal strategic partner for POSCO Maharashtra Steel and the partnership between the two entities is a benchmark relationship for us globally. We look forward to a lasting and mutually beneficial association."
With a single-location flat steel integrated manufacturing facility at Hazira in Gujarat with a capacity of 9 MTPA, AMNS India is strategically located to support POSCO Maharashtra Steel facility with HRC for manufacturing of cold rolled and coated steel.AM/NS India is a leading integrated flat carbon steel producer in India. It produces a full diversified range of flat steel products, including value-added steel, and has a pellet capacity of 14 million tonnes with another 6 million tonne expansion plan in the pipeline.