POSCO in India
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTA130 |
Electronic Format: Rs.
300;
Courier (within India):Rs. 25 Extra
Themes- |
| Case Length |
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14 Pages |
| Period |
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1960-2005 |
| Organization |
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- |
| Pub Date |
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2005 |
| Teaching Note |
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Not Available |
| Countries
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India |
| Industry |
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Steel |
Abstract:
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South Korea's Pohang Steel Co. (POSCO) is one of the largest steel makers in the
world. As Korea has little native iron ore or coal, POSCO mostly purchases its
iron ore and coal from Australia, Brazil, Canada, China, India, and Russia.
POSCO, is now looking at India as a major source of iron ore.
But after the company's announcement in March 2005, that it will set up a big
steel plant in Orissa, with an annual capacity of more than 10 million tons,
there has been stiff political opposition to the deal. After several rounds of
discussions between POSCO and the Orissa Government, the MoU has been finally
signed, clearing the way for the largest foreign investment ever in India. Work
is expected to begin in 2007.
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POSCO has now requested grant of SEZ status. Will the
permission be given? Will there be fresh political opposition to the deal? Will
the deal be beneficial for both the countries? Will POSCO achieve its promised
targets? These are the questions, which POSCO management is pondering in the
middle of 2005.
Contents:
Keywords:
Pohang Steel Co., Posco deal, Posco's entry to India, Orissa,
Steel plants in India, Posco MoU, SEZ Status, Political opposition and
Controversy over the posco deal
POSCO in India
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