JSW Steel said on Friday it has signed a memorandum of understanding to conduct a feasibility study with its strategic alliance partner JFE Steel Corporation of Japan to establish a grain oriented electrical steel sheet manufacturing and sales joint venture company in India.
The plan is to complete the study within the current 2021 fiscal year and take appropriate steps to set up this JV company.
JSW and JFE continue to deepen their alliance since they signed a comprehensive strategic collaboration agreement in 2009 under which JFE Steel took an equity stake in JSW Steel and has provided technical cooperation with regard to automotive steel products.
In 2012, JSW and JFE entered into an agreement under which JFE has provided technology for production of non-oriented electrical steel sheets which has enabled JSW to become India's leading supplier in this field.
Seshagiri Rao, Joint Managing Director of JSW Steel and Group Chief Financial Officer, said the feasibility study for a JV with JFE Steel will strengthen the company's position as India's leading manufacturer of advanced steel products that lead to reduced CO2 emissions and a more sustainable world.
"Our partnership with JFE Steel since 2009 has provided us access to cutting-edge technologies and world-class technical expertise to enhance our operational excellence."
Due to steadily increasing demand for electric power, growing adoption of renewable energy and electrification of automobiles, continued growth is forecast in India and globally for grain oriented electrical steel sheet which is primarily used in transformers.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor