JSW and POSCO sign for steel plant, EV batteries, and clean energy
POWER & RENEWABLE ENERGY

JSW and POSCO sign for steel plant, EV batteries, and clean energy

JSW Group and South Korea’s POSCO have signed a strategic agreement to collaborate in steelmaking, electric vehicle (EV) batteries, and renewable energy projects, marking POSCO’s fourth attempt to establish a foothold in India over the past 15 years. As part of the agreement, the two companies will initially set up a 5 million tonnes per annum (MTPA) integrated steel plant, with provisions for future capacity expansion. While the partnership details remain undisclosed, industry sources expect the plant to be located in Jagatsinghpur, Odisha, where JSW Utkal Steel has already secured regulatory approval for a 13.2 MTPA steel unit—projected to be India’s largest single-location steel plant.

POSCO’s earlier attempts to enter the Indian market faced multiple setbacks. In 2010, it announced a joint venture with the Steel Authority of India (SAIL) for a steel unit in Bokaro, Jharkhand, but the partnership dissolved over shareholding disagreements. Similar plans to establish steel plants in Karnataka and Odisha were scrapped in 2013 and 2017, respectively, due to land acquisition issues, protests, and delays in regulatory approvals. Ironically, the Jagatsinghpur site now allocated to JSW was the same land POSCO abandoned in 2017.

Speaking on the collaboration, Sajjan Jindal, Chairman of JSW Group, emphasized that the partnership aligns with India’s rapid economic growth and JSW’s focus on sustainable development. "Our collaboration with POSCO strengthens our commitment to drive transformation across key sectors," Jindal stated. POSCO’s chairman, Chang In-hwa, added, "This partnership will not only contribute to the economic growth of both countries but also promote a more sustainable and eco-friendly future."

The partnership also aims to foster renewable energy projects and support the development of an EV ecosystem in India. Through its listed subsidiary JSW Energy, the group already has a significant presence in renewable energy, while its investment in MG Motor India, the domestic arm of China’s SAIC Motor, reflects its ambitions in the EV sector. JSW Steel also operates a joint venture with Japan’s JFE Steel for manufacturing grain-oriented electrical steel in India.

JSW Group, a $24 billion conglomerate, operates across multiple industries, including steel, energy, infrastructure, cement, and mobility. JSW Steel’s stock closed at Rs 959.35 on the NSE, down about 1%.

In related news, JSW Steel anticipates improved margins in the second half of FY25, following a recovery in steel prices from multi-year lows in September. Jayant Acharya, joint managing director at JSW Steel, expressed optimism, citing cost-cutting measures and new capacity expansions that will help boost sales and spread fixed costs. Acharya also noted that coking coal costs are expected to decline by $20-25 per tonne, further supporting the company’s margin recovery. "We are optimistic about H2," he said, predicting stronger demand and higher EBITDA driven by increased production capacity.

(Mint)

JSW Group and South Korea’s POSCO have signed a strategic agreement to collaborate in steelmaking, electric vehicle (EV) batteries, and renewable energy projects, marking POSCO’s fourth attempt to establish a foothold in India over the past 15 years. As part of the agreement, the two companies will initially set up a 5 million tonnes per annum (MTPA) integrated steel plant, with provisions for future capacity expansion. While the partnership details remain undisclosed, industry sources expect the plant to be located in Jagatsinghpur, Odisha, where JSW Utkal Steel has already secured regulatory approval for a 13.2 MTPA steel unit—projected to be India’s largest single-location steel plant. POSCO’s earlier attempts to enter the Indian market faced multiple setbacks. In 2010, it announced a joint venture with the Steel Authority of India (SAIL) for a steel unit in Bokaro, Jharkhand, but the partnership dissolved over shareholding disagreements. Similar plans to establish steel plants in Karnataka and Odisha were scrapped in 2013 and 2017, respectively, due to land acquisition issues, protests, and delays in regulatory approvals. Ironically, the Jagatsinghpur site now allocated to JSW was the same land POSCO abandoned in 2017. Speaking on the collaboration, Sajjan Jindal, Chairman of JSW Group, emphasized that the partnership aligns with India’s rapid economic growth and JSW’s focus on sustainable development. Our collaboration with POSCO strengthens our commitment to drive transformation across key sectors, Jindal stated. POSCO’s chairman, Chang In-hwa, added, This partnership will not only contribute to the economic growth of both countries but also promote a more sustainable and eco-friendly future. The partnership also aims to foster renewable energy projects and support the development of an EV ecosystem in India. Through its listed subsidiary JSW Energy, the group already has a significant presence in renewable energy, while its investment in MG Motor India, the domestic arm of China’s SAIC Motor, reflects its ambitions in the EV sector. JSW Steel also operates a joint venture with Japan’s JFE Steel for manufacturing grain-oriented electrical steel in India. JSW Group, a $24 billion conglomerate, operates across multiple industries, including steel, energy, infrastructure, cement, and mobility. JSW Steel’s stock closed at Rs 959.35 on the NSE, down about 1%. In related news, JSW Steel anticipates improved margins in the second half of FY25, following a recovery in steel prices from multi-year lows in September. Jayant Acharya, joint managing director at JSW Steel, expressed optimism, citing cost-cutting measures and new capacity expansions that will help boost sales and spread fixed costs. Acharya also noted that coking coal costs are expected to decline by $20-25 per tonne, further supporting the company’s margin recovery. We are optimistic about H2, he said, predicting stronger demand and higher EBITDA driven by increased production capacity. (Mint)

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?