India’s JSW Steel has approved entering into a share subscription and joint venture agreement with Posco Co., Ltd and Posco-India Private Limited to establish a 50:50 joint venture, the company said.
The joint venture will develop a greenfield integrated steel plant with a capacity of 6 mln tons per year in Odisha. The project will be implemented through Saffron Resources Private Limited, currently a wholly owned subsidiary of JSW Steel, which will become a 50:50 JV entity after Posco’s investment.
Saffron Resources currently holds around 887 acres of land in Odisha, including approximately 595 acres of freehold land and 292 acres of leasehold land.
As part of the agreement, Poco Group will invest around USD 55 mln in the JV, subject to closing adjustments. The transaction is expected to be completed by December 2026.
The partnership aims to leverage advanced steelmaking technologies and focus on the production of high-grade steel for automotive and advanced applications, while supporting capacity expansion in India.
Posco is one of the world’s largest steel producers, with a global crude steel production capacity of approximately 45 mln tons per year.
JSW Steel’s consolidated crude steel capacity stands at 35.9 mln tons per year, including 1.5 mln tons in the US. The company plans to increase its domestic capacity to 50 mln tons per year and total consolidated capacity to 51.5 mln tons per year by FY2030-31.
