Sajjan Jindal-led JSW Steel Ltd has signed a heads of agreement (HoA) with Posco to set up an integrated 6-million-tonne capacity steel plant in India, as the South Korean major’s quest to build a meaningful presence in one of the world’s fastest growing markets for the alloy continues.
The new plant is likely to come up in Odisha, two companies said in a joint statement, the state where Posco had originally envisaged setting up a 12 MT plant two decades back. The solo venture had to be aborted a decade later after the project faced delays over resistance to land acquisition and complications over mining regulations.
The site initially earmarked for the Posco plant at Paradip is now with JSW, which plans to set up a 13 mt plant in phases. However, the proposed 50:50 joint venture between the two would not come up there.
A statement put out by JSW Steel this morning said two companies will undertake a detailed feasibility study to finalise the plant’s location, investment terms, resource availability, and other critical factors. Given its natural resource base and logistical advantages, Odisha is among the key locations being considered, the statement added.
Even as investment will depend on the product profile and plant configuration, among others, the industry benchmark suggests a $1 billion capex for a million tonne capacity. This agreement follows a memorandum of understanding signed in October 2024 and outlines the broad framework for the proposed 50:50 joint venture.
The HoA was signed in Mumbai, where JSW Group is based, in the presence of Lee Ju-tae, representative director and president, Posco Holdings, and Jayant Acharya, joint MD & CEO, JSW Steel.
“This partnership brings together JSW’s proven execution capabilities and strong domestic footprint with Posco’s technological leadership in steelmaking. The 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 said.
Posco’s Lee Ju-tae added, “India is central to the future of global steel demand. Our collaboration with JSW is based on mutual trust and a shared long-term vision. This initiative represents our commitment to supporting India’s industrial growth while creating long-term value for both.”
Posco operates a steel downstream unit in Maharashtra. After giving up on the Paradip project, the company teamed up with SAIL and RINL, but nothing came of those. In 2022, it also signed an agreement with Adani, which did not materialise.