JSW Steel and POSCO to Invest ?650 Billion in Odisha Steel Plant
Steel

JSW Steel and POSCO to Invest ?650 Billion in Odisha Steel Plant

India's JSW Steel and South Korea's POSCO have announced plans to jointly invest ?650 billion (~$7.73 billion) in constructing a steel plant in Odisha. The plant, which will have an initial capacity of 5 million tons of steel annually, is part of their strategy to tap into India's rapidly growing steel market, fueled by its fast-paced economic expansion.

The cooperation agreement was signed last week, although specific financial details were not disclosed. The initial investment for the project will be ?200 billion, with the plant expected to be operational by next year. Over the following three years, the plant's capacity is set to grow to 18 million tons per year, requiring the full $7.73 billion investment.

India's steel demand has surged in response to infrastructure expansion and rapid economic development, positioning the country as a key market for the steel industry amid declining demand in Europe and the U.S. From April to August, steel demand in India reached its highest level in seven years, driven by the construction of new plants and warehouses for large corporations.

The new facility in Odisha will produce hot-rolled, cold-rolled, and galvanized steel. This venture marks POSCO's latest attempt to establish a large enterprise in India. A few years ago, POSCO planned a $12 billion investment—the largest foreign direct investment project in India at the time—but the project was shelved due to land acquisition challenges.

Separately, JSW Steel is also pushing forward with decarbonization efforts, planning to invest $1 billion to reduce CO2 emissions and become carbon neutral by 2050. The company aims to cut emissions by 42%, reducing them to 1.95 tons of CO2 per ton of steel by 2030.

In addition, JSW Steel recently announced its acquisition of a 67% stake in Australian coal company M Resources for $120 million, enhancing its coal reserves and supply chain.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

India's JSW Steel and South Korea's POSCO have announced plans to jointly invest ?650 billion (~$7.73 billion) in constructing a steel plant in Odisha. The plant, which will have an initial capacity of 5 million tons of steel annually, is part of their strategy to tap into India's rapidly growing steel market, fueled by its fast-paced economic expansion. The cooperation agreement was signed last week, although specific financial details were not disclosed. The initial investment for the project will be ?200 billion, with the plant expected to be operational by next year. Over the following three years, the plant's capacity is set to grow to 18 million tons per year, requiring the full $7.73 billion investment. India's steel demand has surged in response to infrastructure expansion and rapid economic development, positioning the country as a key market for the steel industry amid declining demand in Europe and the U.S. From April to August, steel demand in India reached its highest level in seven years, driven by the construction of new plants and warehouses for large corporations. The new facility in Odisha will produce hot-rolled, cold-rolled, and galvanized steel. This venture marks POSCO's latest attempt to establish a large enterprise in India. A few years ago, POSCO planned a $12 billion investment—the largest foreign direct investment project in India at the time—but the project was shelved due to land acquisition challenges. Separately, JSW Steel is also pushing forward with decarbonization efforts, planning to invest $1 billion to reduce CO2 emissions and become carbon neutral by 2050. The company aims to cut emissions by 42%, reducing them to 1.95 tons of CO2 per ton of steel by 2030. In addition, JSW Steel recently announced its acquisition of a 67% stake in Australian coal company M Resources for $120 million, enhancing its coal reserves and supply chain.

Next Story
Resources

IGBC Launches 32nd Chapter in Ranchi to Drive Green Building Growth

The CII Indian Green Building Council (IGBC) has launched its 32nd Chapter in Ranchi to accelerate Jharkhand’s transition towards sustainable and resilient urban infrastructure. The launch event, held on September 6 at Radisson Blu Hotel, brought together government officials, industry leaders, and sustainability experts. Sunil Kumar, IAS, Principal Secretary, Urban Development & Housing Department, Government of Jharkhand, said, “The launch of the IGBC Ranchi Chapter marks a significant step in Jharkhand’s urban development journey. The state is committed to creating a policy e..

Next Story
Real Estate

Mindspace REIT Marks Five Years With 14.8 Per Cent Annualised Returns

Mindspace Business Parks REIT, owner and developer of a Grade-A office portfolio, has completed five years since its listing on the Indian bourses in August 2020. Despite debuting during the global pandemic, the REIT has delivered 14.8 per cent annualised total returns, expanded its portfolio, and reinforced occupier trust. Key achievements over five years include: Portfolio expansion of 30 per cent to 31.0 msf through acquisitions and new developments. Gross leasing of 25.2 msf, with occupancy sustained at 93.7 per cent. Cumulative distribution of Rs 55.9 billion to unitho..

Next Story
Real Estate

Great Value Realty Secures RERA Nod for Ultra-Luxury Ekanam Project

Great Value Realty, one of North India’s most trusted developers, has received RERA approval for its flagship ultra-luxury residential project, Ekanam (RERA No. UPRERAPRJ15109/2019). The announcement was made during the Great Partners Meet at Noida. Built on the only available land parcel in Sector 107, Noida, Ekanam embodies the company’s philosophy, “Great is the New Norm,” promising excellence in design, quality, and sustainable community living. With seamless connectivity to Noida Expressway, DND Flyway, metro stations, and proximity to the upcoming Jewar Airport, the project ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?