JSW Steel and POSCO Group have signed a non-binding Heads of Agreement (HoA) to explore the establishment of a 6 million tonnes per annum (MTPA) integrated steel plant in India. The two companies plan to form a 50:50 joint venture, with Odisha under consideration as a potential site.
The HoA, signed in Mumbai, follows a Memorandum of Understanding (MoU) entered into by the companies in October 2024. The agreement sets the framework for a detailed feasibility study that will assess plant location, investment requirements, resource availability, and other factors. Final terms remain subject to feasibility and regulatory approvals.
“This partnership brings together JSW’s proven execution capabilities and strong domestic footprint with POSCO’s technological leadership in steelmaking. The proposed 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,” said Jayant Acharya, Joint Managing Director & CEO of JSW Steel.
“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 organizations,” said Lee Ju-tae, Representative Director and President of POSCO Holdings.
JSW Steel, part of the USD 23 billion JSW Group, has a consolidated steelmaking capacity of 35.7 MTPA, including 1.5 MTPA in the United States. Expansion projects are expected to increase capacity to 43.4 MTPA within three years. The company has set a target of achieving net-zero carbon emissions by 2050 and plans to source all its power from renewable energy by 2030.
POSCO Group, based in South Korea, operates with an annual crude steel production capacity of about 42 million tonnes. Its steel business is centred around integrated facilities in Pohang and Gwangyang, with operations and sales networks across major global markets. The company is also investing in hydrogen-based steelmaking technology and renewable energy initiatives to achieve net-zero carbon emissions by 2050.
