The South Korean steelmaker said Monday the two companies signed a final agreement in India under a 50:50 partnership structure, with Posco committing about 5.36 trillion won for its share of the project. The plant will be built in Odisha and is targeted for completion in 2031.
The planned facility will be a full-process integrated steel mill with 6 million tons of annual crude steel capacity, equipped with ironmaking, steelmaking, hot-rolling, cold-rolling and galvanizing lines capable of producing high-value premium steel products. The partnership will be executed through Saffron Resources Private Limited, a wholly owned subsidiary of JSW Steel.
Posco said the site was chosen for its proximity to iron ore resources and for access to logistics and power infrastructure.
The deal marks a decisive step in Posco’s long pursuit of an upstream steelmaking foothold in India, a market it has eyed since 2004 but where repeated attempts were stalled by difficulties including partner selection and land acquisition.
The company said the latest agreement moves the project into full execution after a memorandum of understanding signed in 2024 and a heads of agreement reached last year.
Posco is betting that India’s rapid economic growth, urbanization and manufacturing expansion will continue to drive robust steel demand, particularly in higher-margin segments such as automotive and appliance steel.
The company noted that steel consumption growth in India has exceeded 10 percent annually for several years, supporting rising demand for value-added products.
The two companies are also reviewing ways to build a lower-carbon production system by combining Posco’s low-carbon steelmaking and smart factory technologies with JSW’s renewable energy infrastructure. Part of the electricity supply for the mill could come from renewable sources, in line with India’s green steel classification framework, POSCO said.
The project fits into Posco’s broader strategy of building localized production networks to cope with rising protectionism and shifting global supply chains.
Alongside the India investment, the group has also pursued equity participation in a steel plant in Louisiana and cooperation with Cleveland-Cliffs in the United States. At home, it said it is focusing on moving further up the value chain and on applying AI and robotics to intelligent factory operations, as well as developing Korean-style hydrogen-based steelmaking.
“Through this joint investment, we will combine Posco’s innovative steel technology with JSW Group’s strong local competitiveness,” Posco CEO Lee Hee-geun said. “We will also strive to create future value, and contribute to the industrial development and economic growth of both countries.”
JSW Steel CEO Jayant Acharya said the partnership would strengthen India’s steel ecosystem and reinforce the country’s industrial value chain.
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