50:50 JV to build Odisha plant by 2031, targeting high-value steel output
Posco said Monday it would jointly build an integrated steel plant in India with JSW Steel, expanding its presence in the country’s growing steel market and strengthening its global steel supply chain.
Posco Group Chairman Chang In-hwa, Posco CEO Lee Hee-geun, JSW Steel CEO Jayant Acharya, JSW Group CEO Sajjan Jindal and other executives signed an agreement in India to start a joint venture, with both parties holding a 50 percent stake.
With a planned annual capacity of 6 million tons of crude steel, the integrated plant will feature a blast furnace-based production system designed to produce high-value-added steel products. It will cover the full production process — from ironmaking and steelmaking to hot rolling, cold rolling and galvanizing.
Located in Odisha, the facility is close to regional iron ore mines and has efficient access to logistics, power and infrastructure. Construction is slated for completion by 2031.
The two companies plan to integrate Posco’s low-carbon production technologies and smart factory capabilities with JSW Steel’s renewable energy infrastructure, potentially using renewable energy to power part of the facility. The initiative is intended to establish a low-carbon production system in line with India’s Green Steel Taxonomy introduced in 2024.
Posco’s joint venture agreement comes amid deepening ties between Korea and India, as President Lee Jae Myung makes a state visit to the country — the first trip by a South Korean president in eight years. Chang, along with around 250 business leaders, was expected to discuss ways to expand economic cooperation between the two countries.
The steelmaker’s long-awaited project in India has moved forward under Chairman Chang’s “complete localization strategy.” After four unsuccessful attempts since 2004 due to difficulties in securing partners and project sites, the company built its presence through downstream investments and strengthened ties with JSW Group.
According to Posco, India’s steel market has been growing at over 10 percent annually, driven by economic growth, urbanization and manufacturing expansion, with rising demand for high-value-added steel in sectors such as automotive and appliances.
Posco aims to navigate global protectionism through localized investments, including the India project, a Louisiana steel plant and collaboration with Cleveland-Cliffs to strengthen its US steel supply chain.
Domestically, it is advancing high-value products, smart factories and hydrogen-based steelmaking, while reinvesting global earnings into domestic decarbonization efforts.
hyejin2@heraldcorp.com
