POSCO Group to Pursue Steel Plant Joint Venture with India's JSW Group

On the 21st in Mumbai, India, top executives of both companies attended
MOU for cooperation in steel, secondary battery materials, and renewable energy

On the 21st, POSCO Group and JSW Group signed an MOU on business cooperation in the fields of steel, secondary battery materials, and renewable energy. Jang In-hwa, Chairman of POSCO Group (right), and Sajan Jindal, Chairman of JSW Group (left), are taking a commemorative photo. Photo by POSCO

POSCO Group announced on the 29th that it is promoting the construction of an integrated steel mill in India, a growth market with a population of 1.4 billion.

On the 21st, POSCO Group signed a memorandum of understanding (MOU) with JSW Group, India’s leading steel company, in Mumbai, India, to cooperate in the steel, secondary battery materials, and renewable energy sectors. The signing ceremony was attended by POSCO Group Chairman Jang In-hwa and JSW Group Chairman Sajjan Jindal, along with other top executives from both companies.

Following the signing of this MOU, POSCO Group and JSW Group agreed to jointly explore business opportunities and strengthen group-level cooperation in key business areas such as secondary battery materials and renewable energy, including a joint project to build an integrated steel mill in India. As the first phase, they plan to prioritize the Odisha state region for the construction of a 5 million ton per year integrated steel mill, with plans to consider further expansion thereafter.

Chairman Jang In-hwa stated, "We look forward to contributing to the economic development of both Korea and India and leading the transition to an eco-friendly era together with JSW Group." He emphasized, "To overcome economic bloc formation and secure a super-gap competitiveness, we will actively promote future growth investments at the group level, including expanding overseas investments focused on the upstream steel process."

This business cooperation is a result of quickly initiating consultations between the two companies after deciding investment priorities to capture high-growth and high-profit markets centered on global upstream and downstream processes in India and North America, as part of the 'Rebuilding Steel Competitiveness' initiative among the seven future innovation tasks announced after Chairman Jang In-hwa’s inauguration. The two companies also agreed to establish a regular exchange meeting at the CEO level to continuously monitor the progress of the business.

Additionally, in the secondary battery materials sector, POSCO Group plans to actively seek business cooperation with JSW Group in joint investments and technology development along the secondary battery materials value chain. In the renewable energy sector, they plan to expand cooperation starting with renewable energy projects for self-supply at the joint integrated steel mill. India is recognized as an optimal location for renewable energy production due to its abundant solar and wind resources.

India is the world’s largest growth market, with an expected average annual economic growth rate of 6.7% by 2030. According to the steel industry analysis firm World Steel Dynamics (WSD), India’s steel demand is expected to grow by 7% annually, reaching 190 million tons by 2030.

JSW Group is a leading Indian company operating diverse businesses across steel, energy, and infrastructure throughout India. Recently, it has actively entered the electric vehicle and battery business by acquiring shares of MG Motors India from Shanghai Automotive. JSW Steel, the group’s largest business unit, operates four integrated steel mills and is India’s top steel producer.

POSCO Group has already been conducting successful business activities in India, operating a 1.8 million ton cold-rolled and galvanized steel plant in Maharashtra and five steel processing plants in Delhi, Chennai, and other locations. Through strategic cooperation with JSW Group, POSCO expects to further strengthen its position in India, the world’s most populous country with significant growth potential.

Meanwhile, POSCO Group announced its management vision this year, titled "Materials Opening the Future, Innovation Toward World-Class Excellence," declaring its leap to become a world-class company with the highest global corporate value in the materials sector by doubling group consolidated sales and quadrupling operating profit by 2030, focusing on steel, secondary battery materials, and new materials.

This content was produced with the assistance of AI translation services.