Indian Steel major JSW Steel and South Korea’s POSCO Group have entered into a strategic agreement to jointly explore setting up a 6 million tonnes per annum (MTPA) integrated steel plant in India. The two companies signed a non-binding Heads of Agreement (HoA) in Mumbai, marking a step forward from the Memorandum of Understanding (MoU) inked in October 2024. The HoA provides a framework for a proposed 50:50 joint venture, under which a detailed feasibility study will be undertaken to determine the plant’s location, investment structure, and raw material sourcing.
According to JSW Steel, Odisha has emerged as a leading contender for the project due to its mineral resources and logistical advantages. “Given its natural resource base and port connectivity, Odisha is among the key locations being evaluated,” the company said in its statement.
The signing ceremony was attended by Lee Ju-tae, president of POSCO Holdings, and Jayant Acharya, joint managing director and CEO of JSW Steel.
JSW Steel’s Joint MD and CEO, Jayant Acharya, noted that the collaboration leverages the strengths of both companies, combining JSW’s execution capabilities and domestic presence with POSCO’s technological expertise in steelmaking. The venture is positioned to support India’s Atmanirbhar Bharat vision and aims to establish a manufacturing hub capable of serving both domestic and export markets.
POSCO Holdings’ Representative Director and President, Lee Ju-tae, emphasized that India is central to global steel demand. He highlighted that the partnership with JSW reflects a long-term strategic approach to support industrial growth in India while creating value for both organisations.
JSW Steel, part of the $23-billion JSW Group, is currently India’s largest integrated steel producer with a consolidated capacity of 35.7 MTPA, including 1.5 MTPA in the United States. POSCO, South Korea’s leading industrial conglomerate, has been seeking to deepen its presence in India. In 2022, it signed a pact with the Adani Group to explore collaboration in steel, renewable energy, and allied sectors.
The feasibility study under the new HoA will assess key factors including capital expenditure, environmental clearances, and market potential. A final investment decision will be taken after the study is completed.
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