JSW Steel and South Korea’s POSCO Group have signed a non-binding Heads of Agreement (HoA) to jointly assess the feasibility of setting up a 6 million tonnes per annum (MTPA) integrated steel plant in India, the companies announced in a joint statement on Monday.
This latest agreement builds on a Memorandum of Understanding (MoU) signed in October 2024, which laid the groundwork for a proposed 50:50 joint venture aimed at expanding India’s steel production capacity.
The HoA was signed in Mumbai in the presence of Lee Ju-tae, Representative Director and President of POSCO Holdings, and Jayant Acharya, Joint Managing Director and CEO of JSW Steel.
As part of the next phase, both companies will conduct a detailed feasibility study to evaluate investment needs, potential locations, resource availability, and necessary regulatory approvals. Odisha has emerged as a strong contender for the project site, owing to its rich mineral resources and logistical advantages, the statement noted.
Jayant Acharya highlighted that the collaboration leverages JSW’s strong domestic footprint and project execution capabilities, combined with POSCO’s advanced steelmaking technology. He emphasized that the venture aligns with the Indian government’s Atmanirbhar Bharat vision and aims to position India as a global manufacturing hub.
“This partnership brings together JSW’s proven execution strengths with POSCO’s technological leadership. It supports the Atmanirbhar Bharat initiative and will help establish a competitive manufacturing base to cater to both domestic and export markets,” Acharya said.
Lee Ju-tae of POSCO Holdings stressed India’s importance in the future of global steel demand and underscored the mutual trust and shared vision driving the partnership. He described the initiative as a reflection of POSCO’s commitment to supporting India’s industrial growth while delivering long-term value to both firms.
“India is at the heart of future global steel demand. Our collaboration with JSW is founded on trust and a shared vision. This initiative reaffirms our dedication to India’s industrial development and to creating lasting value for both companies,” Lee said.
JSW Steel, the flagship company of the $23 billion JSW Group, currently operates with a consolidated capacity of 35.7 MTPA, which is expected to grow to 43.4 MTPA over the next three years. Its Vijayanagar facility in Karnataka is the largest single-location steel plant in India. The company has also committed to achieving net-zero carbon emissions by 2050 and plans to fully transition to renewable energy sources by 2030.
POSCO Group, with an annual crude steel output of around 42 million tonnes, runs large integrated steel mills in Pohang and Gwangyang, South Korea. The group is also investing in hydrogen-based steelmaking technologies to support its goal of net-zero emissions by 2050.
