JSW Steel, India’s largest steel producer, and South Korea’s POSCO Group have signed a non-binding Heads of Agreement (HoA) to evaluate the possibility of establishing a 6 million tonnes per annum (MTPA) integrated steel plant in India. The proposed facility would be developed through a 50:50 joint venture, subject to further feasibility assessments and regulatory approvals.
The agreement, signed in Mumbai, builds upon a Memorandum of Understanding (MoU) between the two companies from October 2024. It outlines a preliminary framework for collaboration and sets the stage for a detailed feasibility study to determine key aspects such as plant location, investment structure, raw material sourcing, and infrastructure requirements.
Odisha is currently among the potential locations under consideration due to its mineral resources and logistical advantages, though no final decision has been made.
Representatives from both companies were present at the signing. Lee Ju-tae, Representative Director and President of POSCO Holdings, and Jayant Acharya, Joint Managing Director & CEO of JSW Steel, confirmed the agreement as part of broader efforts to strengthen industrial cooperation between India and South Korea.
“This proposed collaboration combines JSW Steel’s domestic scale and operational experience with POSCO’s advanced steelmaking technologies,” said Acharya. “The project is being evaluated in the context of India’s growing steel demand and its goals for self-reliance and export competitiveness.”
Lee noted that India plays a significant role in global steel consumption trends. “Our engagement with JSW reflects a shared long-term vision for sustainable industrial growth. This initiative supports India’s manufacturing ambitions while aligning with our global strategy,” he said.
The feasibility study is expected to take several months, during which technical, environmental, economic, and regulatory factors will be assessed. Final investment decisions will depend on the outcomes of this analysis and necessary clearances from authorities.
JSW Steel is the flagship company of the JSW Group, a diversified industrial conglomerate with a total revenue of $23 billion. The company operates an integrated steel network with a consolidated capacity of 35.7 MTPA, including production facilities in India and the United States. Capacity is expected to reach 43.4 MTPA within the next three years through ongoing expansion projects. JSW Steel’s Vijayanagar plant in Karnataka is the largest single-location steel facility in India. The company has received multiple sustainability recognitions, including seven-time designation as a Steel Sustainability Champion by the World Steel Association. Over 80% of its Indian operations are certified by ResponsibleSteel™. JSW has committed to achieving net-zero carbon emissions by 2050 and aims to meet 100% of its power needs from renewable sources by 2030.
POSCO Group is a major South Korean industrial group with core operations in steel production, secondary battery materials, construction, and energy. Its steel division, POSCO, ranks among the world’s leading steelmakers, with an annual crude steel production capacity of approximately 42 million tonnes. The company operates integrated steelworks in Pohang and Gwangyang, South Korea, and maintains production and sales networks across Asia, the Americas, and Europe. POSCO has been ranked the world’s most competitive steelmaker for 15 consecutive years by World Steel Dynamics (WSD). The company is investing in low-carbon technologies, including its HyREX hydrogen-based steelmaking process, and has set a target of reaching net-zero emissions by 2050.