November 23, 2024

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Posco Group Chairman Chang In-hwa (right) shakes hands with JSW Group Chairman Sajjan Jindal in Mumbai, India, on Oct. 21. (Posco Group)

South Korean steelmaker Posco Group said Tuesday it plans to establish a comprehensive steel manufacturing facility in India in partnership with Indian steel giant JSW Group.

The facility will incorporate core processes -- ironmaking, steelmaking and rolling -- aiming for an annual production capacity of 5 million tons. Odisha, located on India’s eastern coast, is currently being considered as the site for the facility, with plans for future capacity expansion, the company said.

The joint facility plan follows the recent signing of a memorandum of understanding between Posco Group and JSW Group. The signing event was held in Mumbai on Oct. 21 with the attendance of Posco Group Chairman Chang In-hwa and JSW Group Chairman Sajjan Jindal.

In addition to the steel facility, the partnership seeks to expand into secondary battery materials and renewable energy, utilizing India’s abundant solar and wind resources to support sustainability goals. In particular, Posco and JSW plan to launch a renewable energy project to power the steel plant with green energy.

Posco stated that this partnership aligns with its goal to secure future growth and enhance its steel competitiveness in high-growth markets like India and North America. Posco and JSW will also hold regular executive meetings to track the progress of joint projects and ensure alignment on strategic objectives, it added.

"We look forward to contributing to economic growth in South Korea and India while leading the shift toward an eco-friendly era," said Chang, commenting on the partnership. "To strengthen our competitive edge, we are actively pursuing overseas investments focused on upstream steel processes.”

JSW Group, a leading conglomerate in India specializing in steel, energy and infrastructure, operates four integrated steel plants across the country. Recently, it acquired a stake in MG Motors India from China’s SAIC as part of efforts to expand into the electric vehicle and battery sectors.

Posco, meanwhile, already operates a cold-rolled steel mill with an annual capacity of 1.8 million tons in Maharashtra in India, alongside processing centers in Pune, Delhi, Chennai, and Ahmedabad.

By Hwang Joo-young (flylikekite@heraldcorp.com)