Welcome to POSCO-India

POSCO Reaffirms Commitment to India
On its 1st MoU Anniversary

POSCO-India to kick off site preparation for steel plant & construction of piling for port by April 2007
POSCO-India’s CSR to focus on local welfare
Kujang office to open for local contact

Bhubaneswar, June 21, 2006: POSCO, the fourth largest steel manufacturer in the world, today reiterated its commitment to its proposed project in India. On this day, one year ago, the mega steel giant had signed a Memorandum of Understanding (MoU) with the Government of Orissa for the construction of a 12 mtpa green field steel plant near Paradeep, with an estimated investment of USD12 billion as well as development of iron ore mines in the state. This is India’s biggest FDI.

POSCO-India has modified its plant layout 60 times with the aim of minimizing displacement of locals. The company will soon be implementing a comprehensive CSR programme with a strong focus on local welfare. The process is on with plans for constructing a Human Resource Development Center and free of cost cleft lip surgeries for the local residents of Jagatsinghpur. Next month, the company will inaugurate an office in Kujang, proposed project site to open up a new channel of communication with the locals.

POSCO-India’s steel plant project is the largest foreign direct investment in India till date. Economic statistics indicate that India had garnered a foreign direct investment to the tune of USD 22.9 billion by March 2006 (beginning Jan 2000) with Orissa getting only about USD 70.6 million during this time. In view of this, POSCO’s estimated investment of USD12 billion has made a discernible shift in the dynamics. When the President of India, Dr. APJ Abdul Kalam met with POSCO Chairman & CEO, Mr. Ku-Taek Lee during his trip to Korea earlier this year, the importance of the project was reaffirmed.

Recollecting the developments made on the project during the last one year, Mr. Soung-Sik Cho, Chairman cum Managing Director, POSCO-India Private Limited, said, “The India project is the most prestigious of all our projects outside Korea. The last one-year has been full of challenges and new experiences for us. We are delighted to be part of this beautiful state and are committed that the steel plant will bring in rapid social and economic development in the state.”

Following the signing of the MoU in June 2005, POSCO set-up its Indian subsidiary in August 2005 and made an initial capital investment of USD 51.3 million in the project. The application for prospecting license for three areas was filed in September 2005. The company is now putting together a Mines Development Plan to take this initiative forward. POSCO-India has plans to bring in the best and state-of-the-art FINEX technology to India, which is much more environment friendly than conventional processes. The company has so far opened offices in Bhubaneswar, Delhi, and Paradeep.

POSCO-India project will bring in its wake significant infrastructure development in the region. The key initiatives on this front include construction of rail links and roadways, a captive power plant and a captive port around the proposed project site. Besides facilitating project works, these infrastructure developmental activities will add to the convenience and life of locals by bringing added economic benefits.

Committed to spearheading social responsibility programmes in Orissa, POSCO-India is in the process of setting-up a Human Resources Development Center at Paradeep. The center with its various training modules is targeted at both POSCO-India employees and the local residents. In addition, recently, POSCO TJ Park Foundation has announced a series of scholarships and grants for meritorious students from leading universities of India to encourage research, aid higher education and promote academic collaboration between India and Korea.

POSCO-India projects vast employment benefits for the state. Creation of 48,000 direct & indirect jobs in the region and 467,000 man years of employment during the construction phase have been projected. During the first phase itself, POSCO-Indiais expected to offer direct employment to over 7,000 people. Moving in this direction, since the signing of the MoU, the company has already recruited 60% of its employee strength as Indians, and more are expected to join in coming days.

In its endeavour to become a truly Indian company, POSCO’s India subsidiary has been actively engaged in adopting the local culture and its employees from Korea are fast learning to speak in Oriya. In order to promote cultural cooperation between India and Korea, the company has also participated in many cultural activities like food festival.

Mr. Soung-Sik Cho said, “The success of the POSCO-India project in Orissa will send out a positive signal to the world that there is a multi billion dollar opportunity to build Indian infrastructure. We look forward to the continued and dedicated support of both the government and the people of Orissa in making our dream a reality.”

POSCO-India plans to kick off site preparation for steel plant construction and construction of piling for port by April 2007 as arrangements for water and power supply to the port and steel plant site are expected to be in place by March next year.

About POSCO-India

POSCO-India Private Limited is a subsidiary of POSCO, the world’s No. 4 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 green field steel plant near Paradip, Jagatsinghpur District, Orissa, with an estimated investment of USD12 billion. The company will build a 3 million tonne 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 tonnes. POSCO-India Pvt. Ltd. was incorporated in 25th August 2005 with the Registrar of Companies, Orissa, under the Companies Act 1956.