JSW Group Partners with South Korea’s Posco to Build Steel Plant in India Amid Global Uncertainties

Sajjan Jindal-led JSW Steel has partnered with South Korea’s Posco Group to build a 6 million tonnes per annum (MTPA) integrated steel plant in the country. JSW Steel, in a statement on August 18, said Odisha, with its rich natural resource base and logistical advantages, is one of the key locations being considered for the plant. The strategic partnership is a 50:50 joint venture. 

The companies will carry out a detailed feasibility test to finalise the plant’s location, investment structure, resource availability, and other critical factors. 

“This partnership brings together JSW’s proven execution capabilities and strong domestic footprint with Posco’s technological leadership in steelmaking,” said Joint Managing Director & CEO, JSW Steel, Jayant Acharya, according to the statement. “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,” Acharya added.

The 1968-founded Posco Group is a South Korean steel-making giant. The company was initially founded to power South Korea’s goal of becoming self-sufficient in iron and steel, and currently, it is one of the leaders in the global steel-making industry. 

JSW Steel Capex Plans Amid Global Uncertainties 

JSW Steel has committed a capital expenditure of ₹62,000 crore over the next three years to achieve its target of 42 mtpa capacity in India by September 2027. Its domestic installed capacity is 34.2 mtpa and it is eyeing a target of 50 mtpa by the financial year 2030-31. 

The development comes around a time when the Indian steel-making giant is navigating the global political and policy landscape. Additionally, the company is considering a sustainable solution to ensure competitiveness of Indian steel, especially due to uncertainties caused by Donald Trump’s tariffs. 

“While India remains on a transformative growth path, driving healthy steel demand, the steel industry faces a challenging environment marked by weak global demand and record Chinese steel exports, even as iron ore costs remain relatively elevated,” Sajjan Jindal had said in his message to shareholders in the company’s recent annual report.