JSW Steel Limited, in strategic collaboration with its Japanese partner JFE Steel Corporation, on August 4 announced a significant expansion of manufacturing capacity for grain-oriented electrical steel (GOES) through their joint ventures – JSW JFE Electrical Steel Private Limited at Vijayanagar, Karnataka, and JSW JFE Electrical Steel Nashik Private Limited, Maharashtra.
The JV partners will expand Grain-Oriented Electrical Steel Capacity to 350,000 tons per annum in India and will jointly invest approximately Rs 5,845 crore towards this expansion.
JSW Steel-JFE JV to invest Rs 1,545 crore more to up Vijayanagar capacity and JSW Steel-JFE JV step-down arm to spend Rs 4,300 crore for Nashik expansion.
JSW JFE Electrical Steel Nashik Private Limited (“J2ESN”)(formerly thyssenkrupp Electrical Steel India Private Limited) is one of the first manufacturers of Cold Rolled Grain-oriented electrical steel (CRGO) in India with a capacity of 50,000 tons per annum (TPA) situated at Nashik in the State of Maharashtra. The acquisition provided the Company with access to cutting-edge technology thereby aligning with its strategy of enhancing its value-added product portfolio, said JSW Steel
Considering the increasing domestic demand for CRGO, the Board of Directors have approved expansion of the above CRGO facility from 50,000 TPA to 250,000 TPA for phased commissioning from FY2028. The estimate cost of the expansion project is Rs 4,300 crore.
JSW JFE Electrical Steel Private Limited J2ES had already planned to set up a 62,000 tonnes CRGO manufacturing facility at Vijayanagar in Karnataka with a planned investment of Rs 5,557 crore and is scheduled for commissioning by FY2028. This capacity is being enhanced to 100,000 tons per annum with an additional investment of Rs 1,545 crore.
"This expansion reinforces JSW Steel’s commitment to building self-reliance in India's specialty steel sector and supporting national programs such as Make in India and Atmanirbhar Bharat, while also addressing the rapidly growing domestic demand for high-efficiency electrical steel, especially in the renewable energy, energy transition for decarbonization, EMobility, AI data center etc," said JSW Steel in a stock exchange filing.
This capital investment along with the previously announced investments at Vijayanagar facility and the acquisition of the Nashik facility would take the overall investments to Rs 15,560 crore, added JSW Steel.
Jayant Acharya, Joint Managing Director & CEO, JSW Steel, added: “India’s green energy transformation, decarbonisation and digital infrastructure development are triggering large demand for high-grade electrical steel. Our GOES investment is a critical step in enabling import substitution, supporting India’s energy transition goals, and delivering high-efficiency electrical steel solutions to the domestic and global markets. This investment with our long-standing partner JFE Steel reaffirms our commitment to building strategic and future-ready steel capabilities that serve both national and global priorities.”
At 11:15 am on August 4, JSW Steel shares were trading 1.5% higher at Rs 1,043.4 apiece.
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