JSW Steel shares gain over 3% on JV with JFE Steel
This feasibility study for a JV with JFE Steel will strengthen company's position as India's leading manufacturer of advanced steel products that lead to reduced CO2 emissions and a more sustainable world, said Seshagiri Rao of JSW Steel.
May 07, 2021 / 02:04 PM IST
JSW Steel share price gained 3.4 percent intraday on May 7 after entering into a joint venture with JFE Steel for manufacturing grain-oriented electrical steel sheet.
The stock was trading at Rs 749.70 on the BSE, rising 2.77 percent over previous close, at 13:41 hours IST.
JSW Steel on Friday said it signed a Memorandum of Understanding to conduct a feasibility study with JFE Steel Corporation, a strategic alliance partner, to establish a grain-oriented electrical steel sheet manufacturing and sales joint-venture company in India.
The plan is to complete the study within the current 2021 fiscal year and take appropriate steps to set up this JV company subject to requisite approvals, the company added.
JSW Steel and JFE Steel continued to deepen their alliance since they signed a comprehensive Strategic Collaboration Agreement in 2009, under which JFE Steel took an equity stake in JSW Steel, and has provided technical co-operation with regard to automotive steel products, said the company.
In the year 2012, JSW and JFE entered into an agreement where JFE has provided technology for the production of non-oriented electrical steel sheets, which has enabled JSW to become India’s leading supplier in this field.
"This feasibility study for a JV with JFE Steel will strengthen our position as India's leading manufacturer of advanced steel products that lead to reduced CO2 emissions and a more sustainable world," said Seshagiri Rao, Joint MD at JSW Steel & Group CFO.