Synopsis:
JSW Steel and POSCO Group have signed a non-binding agreement to explore a 6 MTPA integrated steel plant in India through a 50:50 joint venture.
The shares of a Steel company, specializing in the manufacturing and distribution of iron and steel products, jumped upto 2.7 percent following the signing of the MoU with a South Korean company to set up a steel plant in India.
With a market capitalization of Rs. 2,61,419.03 crores on Monday, the shares of JSW Steel Ltd jumped upto 2.7 percent, making a high of Rs. 1073.50 per share compared to its previous closing price of Rs. 1045.15 per share.
JSW Steel Ltd, engaged in the manufacturing and distribution of iron and steel products, has announced that they have signed a non-binding Heads of Agreement (HoA) with POSCO Group to explore the possibility of establishing a 6 million tonnes per annum (MTPA) integrated steel plant in India.
This partnership aims to combine JSW’s large-scale operations with POSCO’s advanced technology to create a world-class steel manufacturing facility. The agreement, which builds on an earlier Memorandum of Understanding (MoU) signed in October 2024, sets the stage for a 50:50 joint venture.
Both companies will now conduct a detailed feasibility study to determine key factors such as the plant’s location, investment terms, and availability of resources. Odisha is being considered as a potential site due to its natural resources and logistical advantages. The final terms of the venture will depend on the feasibility study and necessary approvals.
Mr. Jayant Acharya, Joint Managing Director & CEO, JSW Steel, 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.”
Mr. Lee Ju-tae, Representative Director and President, POSCO Holdings, stated, “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.
Financials & Others
The company’s revenue rose by 0.9 percent from Rs. 43,107 crores to Rs. 43,497 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 845 crores to Rs. 2,184 crores in the same period.
JSW Steel, the flagship business of the US$23 billion JSW Group, is India’s leading integrated steel producer with a consolidated capacity of 35.7 MTPA, including 1.5 MTPA in the United States. The company is set to expand its capacity to 43.4 MTPA over the next three years. Its Vijayanagar facility in Karnataka is the largest single-location steel plant in India.
It is recognized globally for its commitment to sustainability, and JSW Steel is a seven-time Steel Sustainability Champion (World Steel Association) and is part of the prestigious Dow Jones Sustainability Index. Over 80% of its Indian capacity is ResponsibleSteel™ certified. With a strong focus on the environment, the company has committed to achieving net-zero carbon emissions by 2050 and plans to source 100% of its power from renewable energy by 2030.
Written by Sridhar J
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