It may be in an extremely preliminary stage, but South Korean steelmaker Hyundai seems keen on setting up a steel plant in India.
A team from the Hyundai group visited Visakhapatnam in South India, where the steel plant of Rashtriya Ispat Nigam Ltd (RINL) is located, and spoke of looking at the possibility of setting up a steel plant in partnership with the public sector company, according to a Business Standard report.
The Telegraph quoted P.K. Rath, chairman and managing director of RINL, acknowledging the visit in October, saying the South Korean major was indeed interested in a joint venture (JV).
Rath told The Telegraph that Hyundai was contemplating setting up a flat steel plant, especially since RINL was already producing long products. Though too early in the day, the plant could have an annual capacity of 3 million tons. Flat steel products like sheets are used in automobiles and consumer durables.
In addition to Hyundai Steel, the Hyundai-Kia Motor Group has steel companies, like the Hyundai Special Steel and BNG Steel Co., Ltd. Specifically, in India, Hyundai has a steel service center under Hyundai Steel India Private Limited (HSIPL), which caters to the steel requirements of Hyundai Motors India Limited.
The delegation of Hyundai company representatives, including the South Korean ambassador, visited the Visakhapatnam Steel Plant. Sources say government-to-government talks for setting up such a project were already on. The delegation will now give its report to the government.
Steel analysts here said Hyundai setting up a JV plant in India would be a good business decision for the South Korean group, as Hyundai not only sells automobiles in India — for which steel is required — but two other Korean brands, Samsung and LG, have a huge presence in the country, with both requiring flat steel products.
RINL itself is on the way to ramping up, aiming for a capacity of 7.3 million tons next year.