(MENAFN- AFP) South Korea's Posco, the world's fifth largest steelmaker, said Friday it was placing a $12 billion steel project in India on hold, as part of the restructuring of its bloated business structure at home and abroad.
Posco, which has 48 subsidiaries under its wing, promised Thursday to cut the number of its domestic-market businesses by half, jettison 30 percent of its overseas operations, and liquidate unprofitable non-core businesses.
On Friday, Posco said it was reconsidering the project in eastern India, which was launched in 2005 but has made little progress due to delays in getting clearances and acquiring land from local residents.
"As the project has been in trouble for a long time, we will not take any further aggressive action," a Posco spokeswoman told AFP.
"However, it does not necessarily mean our company will completely abandon it," she added.
India's environment ministry gave its renewed go-ahead to the plant only in early 2014, but doubts remain over clearances required for a dedicated port as well as fresh land acquisitions.
A major obstacle has been the opposition from environmental campaign groups including Greenpeace and some local activists.
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