NewKerala.com

POSCO & JSW Seal $7.3B Deal for Mega Steel Plant in Odisha

South Korea's POSCO Group and India's JSW Steel have signed a final agreement for a $7.3 billion joint venture to construct a major integrated steel plant. The facility, with a planned annual capacity of 6 million tons, will be built in Odisha with a target completion date of 2031. The deal, attended by top executives from both companies, aims to combine POSCO's technology with JSW's local market strength. The investment aligns with broader bilateral cooperation between South Korea and India on trade, energy security, and supply chain stability.

Key Points: POSCO, JSW Steel Sign $7.3B India Steel Plant Deal

  • $7.3 billion joint venture
  • 6 million ton annual capacity
  • Plant in Odisha, India
  • Targeted completion by 2031
  • 50-50 ownership stake
2 min read

POSCO, JSW Steel sign $7.3 billion deal to build steel plant in India

South Korea's POSCO and India's JSW Steel finalize a $7.3 billion joint venture to build a 6M ton integrated steel mill in Odisha by 2031.

"We will combine POSCO's innovative steel technology with JSW Group's strong local competitiveness. - POSCO CEO Lee Hee-geun"

Seoul, April 20

South Korea's POSCO Group said on Monday it has signed a final agreement with India's JSW Steel to jointly invest 10.7 trillion won to build a steel plant in India, as part of its strategy to establish a production hub in the South Asian country and strengthen its global supply chain.

The two companies signed a joint venture agreement in India, attended by POSCO Group Chairman Chang In-hwa and JSW Steel Chief Executive Officer (CEO) Jayant Acharya, according to POSCO Group, reports Yonhap news agency.

Under the agreement, POSCO and JSW Steel will each hold a 50 percent stake in the project to build an integrated steel mill encompassing the entire production process at a single site.

POSCO will invest about 5.3 trillion won in the project.

The plant, with an annual capacity of 6 million tons, will be built in Odisha, eastern India, with completion targeted for 2031.

POSCO and JSW Steel previously signed a memorandum of understanding in 2024 and a nonbinding heads of agreement last year for the project.

"Through this joint investment, we will combine POSCO's innovative steel technology with JSW Group's strong local competitiveness," POSCO CEO Lee Hee-geun said. "We will also strive to create future value, and contribute to the industrial development and economic growth of both countries."

Earlier, South Korean President Lee Jae Myung said he and Prime Minister Narendra Modi agreed to cooperate on stabilising energy supply chains to better navigate uncertainties stemming from the war in the Middle East.

Outlining the outcomes of his summit with Modi in New Delhi, Lee said he and the Indian prime minister focused on expanding trade and investment, and exploring new opportunities in critical minerals, energy, artificial intelligence (AI), finance and shipbuilding, among other sectors.

"In light of recent developments in the Middle East, we will continue to strengthen bilateral cooperation to ensure a stable supply of energy resources and key raw materials, including naphtha," Lee said during a joint press announcement.

- IANS

Share this article:

Reader Comments

P
Priya S
While the investment is welcome, I hope the environmental impact in Odisha is thoroughly studied. We need development, but not at the cost of our forests and the livelihoods of local communities. The government must ensure strict compliance.
R
Rohit P
JSW partnering with a global giant like POSCO is a smart move. It brings in advanced technology and helps us become more self-reliant in steel production. Aatmanirbhar Bharat in action! Completion by 2031 seems a bit far though, hope they can expedite.
S
Sarah B
Interesting to see the strategic angle mentioned about stabilizing supply chains due to the Middle East situation. This kind of long-term planning with South Korea is crucial for India's energy and industrial security. Win-win partnership.
V
Vikram M
$7.3 billion is a huge commitment. Hope the local youth get proper skill training to be employed in this high-tech plant. We need to move from just providing land and labour to actually absorbing the technology and know-how.
K
Karthik V
Good step, but the timeline to 2031 is too long. By then, the global market and technology might change. Also, 50-50 JV means we need strong Indian management to ensure our interests are protected, not just following the foreign partner's lead.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50