The worlds largest steelmaker, Mittal Steel, plans to build a new 12 million tonne plant in India, BBC Online reports Friday.
The companys Indian-born chairman, Lakshmi Mittal, says he will invest more than 300 billion rupees (6,5 billion US dollar) in the plant in eastern Orissa state. Reports said he had dropped an earlier plan to build the steel plant in the neighbouring state of Jharkhand.
The steel plant will be Mr Mittals first in his native country. Earlier this month, Mittal Steel finally won approval for a 32,5 billion dollar deal to acquire European steel company Arcelor, creating a global steel giant.
Indias demand for steel is growing rapidly as strong economic growth has increased demand for automobiles and building materials. Orissa is one of Indias mineral rich states and South Korean steel giant Posco is also planning a 12 billion dollar plant there.
