Indian company JSW Steel Limited and South Korean POSCO Group are joining forces to create a large steel manufacturing facility in India. The board of directors of JSW Steel has already approved the launch of a joint project with POSCO, which involves the construction of an integrated plant with an initial annual capacity of 6 million tons of steel in Odisha.
This is reported by Finway
Collaboration and Investments
The new plant will be implemented through Saffron Resources Private Limited, a subsidiary of JSW Steel, which will become an equal partner in the joint venture with 50:50 stakes. POSCO will contribute to the equity by subscribing to shares of this enterprise. The agreement is expected to be finalized by the end of the current year.
Saffron Resources already owns approximately 887 acres of land in Odisha. These plots, which are owned and leased, are reserved for the future project.
Strategic Goals and Previous Attempts
Collaboration with POSCO aligns with the strategic goals of JSW Steel, which plans to increase its production capacity from 35.7 million tons per year to 50 million tons per year by the 2030/2031 fiscal year.
POSCO Group had already intended to invest $12 billion in its own steel plant project in Odisha. However, in 2017, these plans were canceled due to prolonged disputes over land allocation, regulatory complexities, and protests from local communities.
“Saffron Resources already has about 887 acres of land in Odisha, including plots both owned and leased, designated for the project.”