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Steel Shortage from Posco's Maharashtra Plant May Force Automakers to Suspend Production: SIAM

Image used for representation. (Photo: FCA India)

Image used for representation. (Photo: FCA India)

South Korean steel major Posco is one of the major suppliers of steel in the industry. It is currently facing labour issues that have disrupted supply to leading automakers in India.

Auto industry body SIAM on Monday said supply shortage of steel from Posco’s Maharashtra-based plant could lead to suspension of production at various facilities of leading companies. The Raigad-based manufacturing plant of South Korean steel major Posco is one of the major suppliers of steel in the industry. It is currently facing labour issues that have resulted in the disruption of supply to some of the leading automakers in the country.

“Disruptions in supplies from Posco Maharashtra Steel has resulted in non-availability of steel for some of the major Auto OEMs,” Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon said in a statement. As per industry sources, auto companies such as Maruti Suzuki, Hyundai Motor, Kia Motors, Tata Motors and Mahindra & Mahindra source steel from the Posco plant.

There have been no despatches of steel since March 4 except for one day, wherein some trucks loaded with steel and held up outside the factory premises were allowed to leave for their destinations, Menon said. “At least one auto manufacturer’s production has already got impacted and if the situation does not improve, it is understood that more OEMs will be constrained to suspend manufacturing in some of their lines, very soon,” he added.

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