POSCO Expands Indian Steel Mill to 6 Million Tons, Launches Full-Scale Partnership with JSW

by Cho Seongpill

Published 18 Aug.2025 14:05(KST)

20% Production Increase from 5 Million Tons
Aiming to Lead India's Rapidly Growing Steel Market
Odisha Considered as Candidate Site, POSCO and JSW to Invest Equally with 50% Stake Each
Construction to Accelerate After Definitive Agreement and Regulatory Approvals
New Executive Exchange Meeting to Be Established

POSCO Group has decided to expand the capacity of its planned integrated steel mill in India from the originally planned 5 million tons per year to 6 million tons per year. This move, which increases the investment scale by 20%, is aimed at securing an early lead in the rapidly growing Indian steel market.

On August 18, POSCO Group announced that it recently signed a Heads of Agreement (HOA) with JSW Group, the leading local steelmaker in India, to promote the construction of the integrated steel mill in Mumbai. The signing ceremony was attended by Joo Tae Lee, President (Head of Future Strategy Division) of POSCO Holdings, and Jayant Acharya, President of JSW Steel, along with other key executives from both companies.

POSCO Group and JSW Group have signed a business cooperation HOA. From the left in the photo are Arun Maheshwari, Director of JSW Group; Jayant Acharya, President; Joo Jae Lee, President of POSCO Holdings; and Sungwon Shin, Head of POSCO Management Planning Headquarters. Photo by POSCO Holdings

This agreement builds upon the 'MOU for Cooperation in Steel and Secondary Battery Materials' signed last October, further developing it by specifying details such as the construction site candidates, scale, and equity structure. The two companies have selected Odisha in eastern India, which offers favorable conditions for sourcing raw materials such as iron ore and coal, as the candidate site for the steel mill. They plan to finalize the site after conducting a joint feasibility study.

The new steel mill will be an integrated facility equipped with blast furnace, steelmaking, and rolling processes, and will have a crude steel production capacity of 6 million tons per year. This represents a 20% increase compared to the previously discussed 5 million tons last year. POSCO explained that the decision to expand production was made to proactively capture market share, given that steel consumption in India has been growing at an average annual rate of about 10% in recent years.

The equity in the project will be split evenly, with POSCO Group and JSW each holding a 50% stake, establishing a balanced partnership structure. Going forward, the two companies plan to finalize the detailed investment conditions and regulatory procedures, sign a definitive agreement, and launch a regular executive exchange meeting to closely monitor the progress of the project.

JSW Group is a leading company in India engaged in steel, energy, and infrastructure businesses across the country. Its main affiliate, JSW Steel, currently operates four integrated steel mills and is the largest steelmaker in India.

Joo Tae Lee stated, "India is a key growth axis in the global steel market. Now that the cooperation between POSCO and JSW has resulted in the construction of a steel mill in India, we will strive to contribute to the industrial development and future value creation of both countries."