October 08, 2008

POSCO not to start work on Orissa plant on April 1st 2008

It is reported that POSCO, after repeating plans to start construction for its controversial steel plant in Orissa in India for almost 4 months, has finally conceded that it would not be able to do so.

Mr Lee Ku Taek CEO of POSCO told reuters that it may face further delays starting construction on a USD 12 billion plant in India. He said that "It may be a bit difficult to meet the schedule to start work in India by April 1st 2008.”

Mr Lee also said that POSCO will have to put back its expected April 2008 start date for work on a 12 million tonne capacity steel plant in India as protests from villagers upset the plant. He added that "April 2008 construction will be difficult, but we will start work within the current year."

Mr Lee after a meeting with Mr Naveen Patnaik chief minister of Orissa in mid October had announced that "April 1st 2008 is the 40th anniversary of POSCO and by then we will have ground breaking for the plant in India."