It is reported that Steel Authority of India Limited has decided to terminate its offer made to South Korean general construction company POSCO Engineering & Construction for the construction of a blast furnace at its Bhilai Steel Plant, as POSCO E&C has failed to sign the contract despite several reminders.
POSCO E&C won the order to construct the USD 400 million BF for SAIL’s Bhilai Steel Plant in February 2008. The project, which would double the plant’s annual production capacity to 2.7 million tonne was to be completed by the end of 2010. According to media reports, POSCO E&C delayed the signing of the contract as the Indian steelmaker was demanding a 15% to 20% cut in the construction cost.
Mr PK Rastogi Indian steel secretary said “SAIL is to float a new tender and is expecting to get a cheaper deal which will help to reduce the cost of expansion.”
(Sourced from http://www.steelguru.com/news/index/2009/07/13/MTAxODc2/SAIL_cancels_BF_construction_order_with_POSCO_E%2526C.html)
Sunday, July 12, 2009
SAIL cancels BF construction order with POSCO E&C
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