Sajjan Jindal-led JSW Steel and South Korea’s POSCO Group have signed a non-binding Heads of Agreement (HoA) to jointly explore setting up a 6 million tonnes per annum (MTPA) integrated steel plant in India, the country’s leading steelmaker informed in a press release today, August 18.
“The agreement marks a significant step toward deepening strategic collaboration between two of the world’s most respected steel companies,” it said.
The agreement builds on the Memorandum of Understanding (MoU) signed by both parties in October 2024 and outlines the broad framework for the proposed 50:50 joint venture, aimed at enhancing India’s steel production capacity, both the companies said in the joint statement.
The HoA was signed in Mumbai in the presence of Lee Ju-tae, Representative Director and President of POSCO Holdings, and Jayant Acharya, Joint Managing Director & CEO of JSW Steel.
As part of the next steps, JSW and POSCO will undertake a detailed feasibility study to finalize the plant’s location, investment terms, resource availability, and other critical factors, both the steelmaker said.
Odisha is among the key locations being considered given its natural resource base and logistical advantages, said the companies in the statement.
JSW Steel’s Jayant Acharya state the partnership brings together JSW’s proven execution capabilities and strong domestic footprint with POSCO’s technological leadership in steelmaking. “The proposed venture aligns with India’s vision of Atmanirbhar Bharat and will help create a globally competitive manufacturing hub to serve both domestic and export markets,” he noted.
Lee Ju-tae stated, “India is central to the future of global steel demand. Our collaboration with JSW is based on mutual trust and a shared long-term vision. This initiative represents our commitment to supporting India’s industrial growth while creating long-term value for both organizations.
JSW Steel is the flagship business of the USD 23 billion JSW Group and has a current consolidated capacity of 35.7 MTPA, including 1.5 MTPA in the United States. Ongoing expansions will raise capacity to 43.4 MTPA over the next three years.
Its Vijayanagar plant in Karnataka is India’s largest single-location steel facility. The company has committed to net-zero carbon emissions by 2050 and aims to source 100 per cent of its power from renewable energy by 2030.
POSCO Group, with an annual crude steel production capacity of about 42 million tonnes, operates major integrated steelworks in Pohang and Gwangyang, South Korea. It is pursuing hydrogen-based steelmaking technology to support its 2050 net-zero target.
