JSW Steel, POSCO to set up 6 mtpa plant in India

JSW Steel and South Korea’s POSCO Group are planning a joint venture to set up a six million tonnes per annum steel plant in India. Building on an October 2024 agreement, the project seeks to establish a globally competitive manufacturing hub catering to both domestic and international markets.

JSW Steel and South Korea’s POSCO Group are in discussions to set up a six million tonnes per annum (MTPA) integrated steel plant in India through a potential 50:50 joint venture. The two companies recently signed a non-binding Heads of Agreement (HoA) in Mumbai, expanding on the Memorandum of Understanding (MoU) signed in October 2024. (In November last year, it was reported that JSW Steel and South Korea’s POSCO plan to invest ₹65,000 crore in the proposed steel plant in India over the coming years, as part of their strategy to tap into the rising steel demand in the world’s fastest-growing major economy.)

The HoA outlines the broad framework for collaboration between the two global steelmakers. The signing ceremony was attended by Lee Ju-tae, Representative Director and President of POSCO Holdings, and Jayant Acharya, Joint Managing Director & CEO of JSW Steel.

According to Mr Jayant Acharya, “This 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.”

Following the signing of the HoA, JSW and POSCO will carry out a detailed feasibility study to determine the plant’s location, investment structure, resource availability, and other key aspects, the joint statement noted. Odisha is among the prime locations under consideration, given its rich resource base and strategic logistical advantages.

POSCO Group, one of South Korea’s leading industrial conglomerates, is internationally recognized for its advanced steel production technologies and diversified portfolio, which extends into secondary battery materials, construction, and energy sectors. Its steel division operates world-class integrated plants in Pohang and Gwangyang, with an annual crude steel capacity of around 42 million tonnes.

The proposed partnership aims to combine POSCO’s global expertise with JSW’s strong domestic presence to boost India’s steel capacity.