Highlights
- JSW Steel and South Korea’s POSCO Group sign Heads of Agreement (HoA) for a joint venture steel plant.
- The project aims to build a globally competitive hub serving Indian and export markets.
Key Facts
- The venture could be structured as a 50:50 partnership, expanding on a 2024 MoU.
- The proposed facility will have a capacity of six million tonnes per annum (MTPA).
Background
JSW Steel has entered into a non-binding Memorandum of Understanding (MoU) with POSCO Group of South Korea, and they plan to jointly establish a six million tonne per annum (MTPA) integrated steel facility in India, marking a major alliance between the two industry giants.
The deal was announced on Monday and is part of a move to create a 50:50 joint venture between the two firms. It is an amendment of a Memorandum of Understanding (MoU), which was signed in October 2024, and presents the outline of cooperation. The signing was in Mumbai, where the Representative Director and President of POSCO Holdings, Lee Ju-tae, and Joint Managing Director & CEO of JSW Steel Jayant Acharya were present.
The JSW Chairman, Jayant Acharya, termed the partnership as a milestone in the steel industry of India by stating: This partnership will combine JSW’s track record of successful operations and domestic presence with the technological advancement of POSCO in the sector. The project falls within the Atmanirbhar Bharat vision of India and will contribute to developing an internationally competitive production center to support target domestic and export markets alike.’
Lee Ju-tae, Representative Director and President of POSCO Holdings, endorsed the sentiment, once again reaffirming India as the primary future demand of steel. We have created a good working partnership with JSW through mutual trust and vision. This is our investment in the manufacturing sector of India and will bring long-term value to both institutions,” he concluded.
Through integration and production of steel in the Pohang and Gwangyang integrated steel plants with an annual capacity of about 42 million tonnes, POSCO is one of the largest industrial conglomerates in South Korea. Other than steel, its portfolio comprises secondary battery materials, energy, and construction.
Analysts in the industry feel that the joint venture has the potential to speed up the growth of India as one of the leading steel exporters and to satisfy growing local demands. As the demand level of quality steel takes an upward trend globally, the collaboration will give India a boost in contributing to the international supply chain.