JSW Steel, Posco to set up 6 mtpa greenfield plant in Odisha
Mumbai: The board of JSW Steel Ltd has approved a joint venture with South Korea’s Posco Group to set up a 6 million tonnes per annum (mtpa) integrated steel plant in Odisha.
Partnership Saffron Resources Pvt. will be carried out through. JSW, a wholly owned subsidiary of JSW Steel, will be converted into a 50:50 joint venture between the two companies, JSW said in a regulatory filing on Friday.
The proposed facility will be a green space project and will mark a significant expansion. JSW Steel’s domestic production footprint.
As part of the deal, Posco will subscribe for Saffron Resources shares for an estimated amount. ₹508.8 crore, subject to closing adjustments. The transaction is expected to be completed by December 31, 2026, unless extended by mutual consent.
Saffron Resources currently owns approximately 887 acres of land in Odisha, including both freehold and leasehold plots, which can be used for development of the facility.
The completion of the joint venture comes nearly 18 months after JSW and Posco signed the first agreement to collaborate on steel production in October 2024. electric vehicle (EV) batteries and renewable energy projects.
“The partnership with POSCO Co., Ltd will enable the Company to establish a strategic partnership for access to technology and production of high-quality steel products for automotive and other applications,” the steelmaker said in a stock exchange filing on Friday.
This will be JSW Steel’s third joint venture with a foreign partner and includes Japan’s JFE Steel Corp. It will be in addition to its two existing partnerships with .
JSW Steel, which has a current crude steel capacity of 35.7 MTPA globally, is targeting a capacity of 50 MTPA in India by FY31. Posco, which has a capacity of around 45 MTPA, is expected to bring advanced technology and operational expertise to the venture.
The partnership also marks Posco’s renewed push in India after previous setbacks.
In 2005, Posco announced plans to invest $12 billion in a 12 mtpa steel plant in Odisha, even opening an office at The Ashok Hotel near the Prime Minister’s residence, signaling its intention to engage with policymakers. In 2010, the company announced another investment of $5.3 billion for a 6 mtpa plant in Karnataka.
Despite high-profile pressure, the projects failed to succeed. Posco withdrew from Karnataka in 2013 and pulled out of the Odisha project in 2017. The outflows were largely due to difficulties in securing iron ore connections and acquiring land amid regulatory hurdles. According to media reports, the Odisha project has also faced constant resistance from local communities in Jagatsinghpur district; Here, residents opposed the diversion of forest lands on which they had relied for generations.
