Japanese company JFE Steel Corp. views the Indian steel industry as a future leader in the global steel market, capable of surpassing China in the long term. With these expectations in mind, the company aims to strengthen its position in India and become the largest foreign steel producer in the country.
This is reported by Finway
JFE Steel’s Major Investments in Collaboration with JSW Steel
In December of last year, JFE Steel announced record foreign investments in India amounting to nearly $2 billion. As explained by JFE Steel’s Executive Vice President Hiroyuki Ogawa, the company does not see other markets with similar development potential, although it is also considering opportunities in the United States.
As part of this strategy, at the end of the year, JFE Steel decided to invest 157.5 billion Indian rupees in a joint venture with the local corporation JSW Steel. It is expected that the Bhushan Power & Steel plant, located in the state of Odisha, will be transferred to this joint venture.
Development Plans and Production Prospects
Under the terms of the agreement, the joint venture plans to increase steel production at the integrated plant to 10 million tons per year by 2030, with potential for future capacity expansion to 15 million tons.
“Commercial operations will begin no later than 2029 or 2030,” noted Hiroyuki Ogawa.
The Executive Vice President of JFE Steel also expressed confidence in India’s ability to withstand the influx of cheap Chinese steel due to the consistent implementation of policies supporting local production.