India’s JSW Steel and Japan’s JFE Steel Corporation have formalized their joint venture to operate the integrated steel facility of Bhushan Power & Steel Limited (BPSL) in Odisha through JSW Kalinga Steel Ltd.
JFE has invested INR 7,875 crore (USD 834 mln) to acquire a 25pct stake in JSW Kalinga Steel, marking the first tranche of its planned investment, JSW Steel said in a BSE filing.
Following the transaction and board restructuring, both partners now exercise joint control over JSW Kalinga Steel and its subsidiary, JSW Sambalpur Steel.
The joint venture plans to expand BPSL’s integrated steel plant capacity from 4.5 mln tons per year to 10 mln tons by 2030, with further potential to scale up to 15 mln tons. The facility produces both flat and long steel products.
JSW Steel currently has a consolidated crude steel capacity of 35.7 mln tons per year, including 1.5 mln tons in the United States, and aims to increase total capacity to 43.4 mln tons over the next three years.
1 USD / 94.4 INR
