JSW Steel and POSCO Join Forces for Major Steel Plant in Odisha

Strategic Partnership for Steel Production

New Delhi: JSW Steel, under the leadership of Sajjan Jindal, has announced a joint venture with South Korea's POSCO to establish a steel manufacturing facility in Odisha, with a capacity of 6 million tonnes per year, as revealed in a statement on Monday.

This collaboration was unveiled during the India-Korea Business Forum held in the capital, where discussions also took place regarding the enhancement of the existing free trade agreement, CEPA, aimed at strengthening economic relations.

According to JSW Steel, the necessary land for the venture has already been acquired, and the facility will focus on producing high-quality flat steel products suitable for the automotive sector and other industries.

Previously, in 2005, POSCO had entered into a memorandum of understanding with the Odisha government for a $12 billion steel project, which was ultimately abandoned over a decade later due to challenges related to land acquisition and regulatory approvals.

JSW Steel emphasized that this agreement represents a crucial advancement in fostering strategic cooperation between the two steel giants.

The integrated steel project will include processes for steelmaking, hot rolling, and cold rolling/coating, with land already secured for its development.

By utilizing POSCO's technological capabilities, the joint venture aims to enhance JSW's product offerings and create new opportunities within the Indian market.

This initiative will provide POSCO with access to India's rapidly growing market, with operations expected to commence by 2031.

The joint venture intends to capitalize on synergies with POSCO's 1.8 MTPA downstream facility located in Pune, Maharashtra.

This partnership is set to strengthen the strategic relationship between the two companies and lay the groundwork for future collaborations, pending regulatory approvals.

"This collaboration will align our visions and commitments, leveraging POSCO's technological prowess alongside JSW's project execution and cost efficiency. We view this as a pivotal move towards enhancing India's steel ecosystem and bolstering the country's industrial value chain," stated Jayant Acharya, Joint Managing Director and CEO of JSW Steel.

The joint venture is poised to deepen the strategic alliance between the two firms and facilitate future partnerships, contingent upon receiving the necessary regulatory approvals.

"Through this collaboration, we aim to merge POSCO's cutting-edge steel technology with JSW Group's robust local competitiveness, contributing significantly to value creation and the economic advancement of both nations," remarked POSCO President Lee Hee-geun.