JSW Steel on August 18 announced that it has signed an agreement with South Korean steel producer, Posco Group, to explore the possibility of jointly setting up a 6 million tonnes per annum (MTPA) integrated steel plant in India.
The Indian steel-maker along with its international peer said that the HoA builds on the Memorandum of Understanding (MoU) signed by both parties in October last year, and outlines the broad framework for the proposed 50:50 joint venture. "The agreement marks a significant step toward deepening strategic collaboration between two of the world’s most respected steel companies," the two companies said.
The HoA was signed in Mumbai in the presence of Lee Ju-tae, Representative Director and President, POSCO Holdings, and Jayant Acharya, Joint Managing Director & CEO, JSW Steel.
After the signing of the HoA, JSW and Posco will undertake a detailed feasibility study to finalize the plant’s location, investment terms, resource availability, and other critical factors, the joint statement said. Odisha is being considered among the key locations, due to its natural resource base and logistical advantages.
Speaking about the prospective partnership, JSW Steel CEO and Joint Managing Director Jayant Acharya said, "This partnership brings together JSW’s proven execution capabilities and strong domestic footprint with POSCO’s technological leadership in steelmaking. The proposed venture aligns with India’s vision of Atmanirbhar Bharat and will help create a globally competitive manufacturing hub to serve both domestic and export markets."
POSCO Holdings Representative Director and President Lee Ju-tae meanwhile said, "India is central to the future of global steel demand. Our collaboration with JSW is based on mutual trust and a shared long-term vision. This initiative represents our commitment to supporting India’s industrial growth while creating long-term value for both organizations."
Earlier in October last year, the two companies had signed an MoU to develop an integrated steel plant in India, having an initial capacity of 5 million tonnes per annum, along with plans to explore battery materials and renewable energy spaces in India.
JSW Steel and South Korea's POSCO plan to invest Rs 65,000 crore in their proposed plant in India in the coming years, Reuters reported in November last year.
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