India Gamble with 6 Million Tons Annual Capacity... POSCO and JSW to Build Integrated Steel Plant

Groundbreaking for Integrated Steel Plant in Odisha...
Completion Targeted for 2031


Aiming at Premium Steel Demand...
Accelerating Global Steel Expansion

POSCO is joining hands with India's largest steelmaker to officially begin the construction of an integrated steel plant.

POSCO signed a joint venture agreement (JVA) with India's top steelmaker JSW Steel on the 20th to build an integrated steel mill. From the right in the photo: Inhwa Jang, Chairman of POSCO Group; Heekun Lee, President of POSCO; Jayant Acharya, President of JSW Steel; Sajjan Jindal, Chairman of JSW Group. Photo by POSCO

On April 20 (local time) in India, POSCO announced that it had signed a joint venture agreement (JVA) with JSW Steel for the construction of an integrated steel plant. The agreement establishes an equal partnership structure, with both companies holding a 50% stake.

The signing ceremony was attended by Inhwa Jang, Chairman of POSCO Group; Sajjan Jindal, Chairman of JSW Group; Heegeun Lee, President of POSCO; and Jayant Acharya, CEO of JSW Steel, along with other key executives from both companies. The two firms previously signed a memorandum of understanding (MOU) in October 2024 and solidified their partnership through a heads of agreement (HOA) in July last year. With this contract, they have now moved into the full-scale construction phase.

The new steel plant will be built in Odisha, India, and will be an integrated steel facility that performs all production processes in one location, including ironmaking (producing molten iron), steelmaking (removing impurities), and rolling (producing steel products). The plant will have an annual crude steel production capacity of 6 million tons. By utilizing its location adjacent to iron ore mines and leveraging logistics and power infrastructure, the project aims to enhance efficiency. Construction is scheduled to be completed in 48 months from groundbreaking, with completion targeted for 2031.

The two companies are also considering combining POSCO's low-carbon operation technologies and smart factory capabilities with JSW's renewable energy infrastructure to supply a portion of the plant's power from renewable sources. Through these efforts, they plan to establish a low-carbon production system that meets the Indian government's green steel classification standards.

The integrated steel plant project in India has long been a priority for POSCO, having been pursued on multiple occasions since 2004 but previously hindered by issues such as finding a suitable joint venture partner and securing a site. POSCO has since built a local foundation through downstream investments, such as electrical steel and automotive steel plants, and strengthened its partnership with JSW Group, ultimately achieving this milestone.

India is a rapidly growing market for steel demand, driven by urbanization, expansion of the manufacturing sector, and population growth. POSCO expects that the strategy of focusing on high-value-added products will be effective, as demand for premium steel used in automobiles and home appliances is forecast to increase.

With this investment, POSCO aims to reinforce a virtuous cycle in which profits generated in the global market are reinvested in domestic decarbonization initiatives. President Heegeun Lee stated, "Through this joint venture, we will combine POSCO's innovative steel technology with JSW Group's strong local competitiveness to create future value and make tangible contributions to the industrial development and economic growth of both countries."

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