Bhubaneswar, Friday, August 25, 2006: POSCO-India, the subsidiary of the third largest steel manufacturer in the world, today celebrated its first Foundation day. To mark the occasion, the company introduced Code of Conduct for its employees and pledged to adhere to its global ethical practices. With the successful completion of one year the company reaffirmed its commitment to its proposed Greenfield project in Orissa.
POSCO had set-up its Indian subsidiary on August 25, 2005. Reminiscing experiences gathered on the project front, Mr. Soung-Sik Cho, Chairman cum Managing Director, POSCO-India Private Limited, said, “POSCO-India, the most prestigious of all projects outside Korea is emerging stronger with every passing day. The progress of the project is steady and we are thankful to the people here, the State Government of Orissa and the Government of India for supporting the project.”
POSCO-India is a bilateral project between India and Korea. It was conceived to create a win-win situation for both the State of Orissa and POSCO. Furthermore, the vision of India is to produce 100 MT steel by 2020. The current steel production in India stands at about 40 MT per annum and there is a discernible gap of 60 MT. In this context CMD added “We at POSCO-India would like to contribute to the growth and development of India through quality steel production and use of advanced technology. We are very proud to be a part of the Indian Steel Vision 2020.”
The Code of Conduct reflects the Company’s uncompromising commitment to integrity and discipline embodied in its management philosophy and its intention to become an exemplary company in India with high standard of work ethics and transparency. The CMD and one Indian staff on behalf of all employees of POSCO-India signed the pledge to abide by the Code of Conduct in all functions of the company. Subsequently all 86 employees underwent a self test on Code of Conduct with focus on workplace conduct.
POSCO-India’s Code of Conduct includes fundamental responsibilities of employees, stress on commitment to customers, business partners, competitors and investors; the company’s commitment to employees. The rules of conduct detail out adoption of sound and fair work practices along with protection of confidential information. It also lays emphasis on avoiding conflicts of interest and creating a culture of mutual trust and respect. Further, the guiding principles laid down in the Code of Conduct details out the scope of benefits permissible in day to day dealings for employees.
On the project front, the progress has been steady. The State Government of Orissa has already sanctioned 1,135 acres of land for the plant. To speed up progress, Nodal officer, R&R officer, and zonal officers have been appointed by the State Government. The Prospective License application was filed by POSCO-India in September 2005 and the grant for the same is soon expected.
In addition, the Committee for Coastal Regulation Zone and Environmental Impact Assessment has decided to send recommendation to the Central Government for the construction of our proposed port. The Recommendation of the State Government for POSCO-India’s SEZ proposal has been sent for approval to Board of Approval, the Central Government.
POSCO-India plans to kick off site preparation for steel plant and piling work for port by April 2007. The arrangements for water and power supply for the construction are expected to be in place by March 2007. The construction for steel plant is projected to begin in September, 2008 and the commissioning of first Phase is expected by end of 2010 in line with the original schedule.
As a part of its commitment towards the socio-economic betterment and the overall progress of the local community, POSCO-India has undertaken the following initiatives:
In a bid to establish better interface with the displaced families, POSCO-India has envisaged a ‘Villagers Friendly Programme’ to address the immediate needs of the displaced and the affected community for contented co-existence.
POSCO-India is in the process of setting up a training center on seven acres of land in Sandhakuda, Kujanga and Jagatsinghpur through which it intends to impart vocational training to the displaced people for better employment prospects.
About POSCO-India
POSCO-India Private Limited is a subsidiary of POSCO, the world’s No. 3 steel producer and one of the most competitive steel companies. POSCO signed a Memorandum of Understanding (MoU) with the Government of Orissa in June 2005, to set up a 12-mtpa Greenfield steel plant near Paradip, Jagatsinghpur District, Orissa, with an estimated investment of USD12 billion. The company will build a 4 million tons capacity steel plant in Orissa, during the first phase of its project between 2007 and 2010 and expand the final production volume to 12 million tons. POSCO-India Pvt. Ltd. was incorporated in 25th August 2005 with the Registrar of Companies, Orissa, under the Companies Act 1956.
Photo Caption:Firm Resolve: CMD and an Indian staff from POSCO-India a reading aloud the Code of Conduct
