By Consultants Review Team
The JSW Group and South Korea's Posco Group have signed a memorandum of understanding (MoU) to develop an integrated steel factory in India, the firm announced in an exchange filing on Tuesday. This new integrated steel plant will have a manufacturing capacity of five million tonnes per year (MTPA) and will focus on producing sustainable energy solutions. This initiative also accords with India's overall goal of strengthening its steel and renewable energy industry.
The MoU was signed at JSW's headquarters in Mumbai by both JSW Chairman Sajjan Jindal and Posco Chairman Chang In-hwa.
With the Indian economy rising at such a quick pace, the business predicts that steel demand would outstrip GDP. The JSW Group believes that this increased demand will create major prospects for the steel sector. The JSW-Posco collaboration intends to have a significant impact by combining JSW's manufacturing knowledge with Posco's superior technologies.
“This MoU with POSCO marks a significant step forward in our journey to contribute to the Indian steel industry,” said Sajjan Jindal. He went on to say that the relationship not only strengthens JSW's commitment to long-term growth, but also places India as a leader in sophisticated manufacturing and green energy efforts.
Posco Chairman Chang In-hwa supported this attitude, saying, "This collaboration will significantly contribute to the economic development of Korea and India, as well as drive our joint efforts towards a more eco-friendly and sustainable future."
JSW Group and Posco to Explore Joint Venture in EVs
Beyond steel production, the partnership plans to investigate joint ventures (JVs) in battery materials and renewable energy, with a focus on the electric vehicle (EV) industry and satisfying the steel plant's energy needs. This comes after JSW Group announced considerable investments in Odisha, including plans for a green steel facility in Jagatsinghpur in February of this year. This factory is estimated to provide over 30,000 direct and indirect jobs.
The Odisha government has also teamed with JSW to establish an integrated electric car and battery manufacturing complex in Cuttack and Paradip, with an estimated investment of Rs 40,000 crore and the potential to create over 11,000 employment. Posco had previously planned to build in the Jagatsinghpur area, but the project was abandoned due to land acquisition opposition.
We use cookies to ensure you get the best experience on our website. Read more...