New Delhi: Sajjan Jindal-led JSW Steel has entered into a joint venture agreement with South Korean steel major POSCO to set up a 6 million tonnes per annum steel plant in Odisha, a statement said Monday.
The announcement was made at the India-Korea Business Forum in the national capital. India and Korea on Monday discussed revamping the existing free trade agreement, CEPA, to boost economic ties.
In the statement, JSW Steel said that the land for the project has already been secured, and once commissioned, the project will be capable of manufacturing high-grade flat steel products for automotive and other applications.
In 2005, POSCO signed a memorandum of understanding with the Odisha government to set up a USD 12 billion mega steel project, but dropped the project more than a decade later due to land acquisition issues and other clearances.
JSW Steel said the agreement marks a significant step towards deepening strategic collaboration between the two steel companies.
The proposed integrated steel project will comprise steelmaking, hot rolling, and cold rolling/coating processes, the company said, adding that the land for the project has already been secured.
Leveraging POSCO’s technological expertise, the joint venture’s product portfolio will complement JSW’s and provide new product opportunities in India.
The project gives POSCO access to India’s high-growth market and will be operational by 2031.
The joint venture aims to leverage the integration with POSCO’s 1.8 MTPA downstream unit in Pune, Maharashtra, to drive significant synergies.
The joint venture will deepen strategic ties between the two companies and set the stage for future collaborations. The completion of the transaction is subject to the receipt of regulatory approvals.
“The partnership will ensure alignment of our vision and commitment, while leveraging POSCO’s technological expertise and JSW’s strengths in project execution and cost leadership. We see this as a significant step towards strengthening India’s steel ecosystem and supporting the nation’s industrial value chain,” JSW Steel Joint Managing Director and CEO Jayant Acharya said.
The joint venture will deepen strategic ties between the two companies, and set the stage for future collaborations. The completion of the transaction is subject to receipt of regulatory approvals.
“Through this joint venture, we will do our utmost to combine POSCO’s innovative steel technology with JSW Group’s strong local competitiveness, making a meaningful contribution not only to future value creation but also to the industrial development and economic growth of both nations,” POSCO President Lee Hee-geun said.
PTI