JSW and Posco partnership targets Indian steel expansion

JSW and Posco of South Korea have joined together to create a 5 mtpa steel facility in India, with an emphasis on renewables and EV materials.

The JSW group, led by Sajjan Jindal, is announcing a joint venture (JV) with Posco of South Korea that would work together in India on steel, battery materials, and renewable energy. According to a release, the two organisations would establish an integrated steel production in India with a starting capacity of 5 million tonnes per year (mtpa). For the proposed steel facility, the JV will look at working together on renewable energy and battery materials for electric vehicles (EVs).

Posco’s technological prowess and JSW’s dominant manufacturing presence would provide a solid foundation for creating innovative solutions for the Indian steel and energy industries, according to JSW.  In front of Posco CEO Chang In-hwa and JSW group chairman Sajjan Jindal, the two parties signed a memorandum of agreement (MoU) at the Indian company’s Mumbai headquarters. The greenfield steel plant’s location is still being determined. By 2031, JSW Steel hopes to increase its capacity in India from 34.2 mtpa to 50 mtpa.

The MoU with Posco marks a significant step forward in “our journey to contribute to the Indian steel industry”, says Jindal. “As one of the world’s fastest-growing economies, India presents tremendous opportunities for sustainable growth, and our partnership with Posco strengthens JSW’s commitment to drive that transformation,” he adds.

“This JV also entails collaboration for renewable energy for a state-of-the-art integrated steel plant and for setting up an EV ecosystem in India. Together, we aim to set a benchmark in technology and sustainability that can shape the future of manufacturing in India and beyond,” Jindal adds. In-hwa states “We are delighted to strengthen our ties with the JSW group. This collaboration will contribute significantly to the economic development of Korea and India, and drive our joint efforts towards a more eco-friendly and sustainable future.”

The launch of the steel facility comes more than two years after Posco and the Adani group signed a non-binding Memorandum of Understanding to investigate business partnership opportunities, including the establishment of a $5 billion integrated steel mill in Mundra, Gujarat. On the site that was allotted to Posco prior to the Korean company’s suspension of the project in 2015, JSW Steel intends to establish a 13.2 mtpa steel factory in Odisha.

In 2005, Posco and the Odisha government signed a memorandum of understanding to establish a $12 billion steel factory. However, the project was put on hold in 2015 due to a change in mining regulations and a delay in land acquisition. Later, Posco attempted to establish a steel mill in India by collaborating with private and public sector companies. In Maharashtra, the steel major has a downstream unit. 

For more details, visit: https://www.jsw.in/

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