Mumbai (Maharashtra) [India], August 18 : JSW Steel and South Korea's POSCO Group have signed a non-binding Heads of Agreement (HoA) to jointly explore the establishment of a 6 million tonnes per annum (MTPA) integrated steel plant in India, as per a joint statement on Monday.
The agreement builds on a Memorandum of Understanding (MoU) entered into by both companies in October 2024 that outlined the framework for a proposed 50:50 joint venture aimed at enhancing India's steel production capacity.
The HoA was signed in Mumbai in the presence of Lee Ju-tae, Representative Director and President, POSCO Holdings, and Jayant Acharya, Joint Managing Director and CEO, JSW Steel.
According to the companies, the next stage will involve a detailed feasibility study covering investment requirements, location options, resource availability, and regulatory clearances.
Odisha is being considered as a key site due to its mineral reserves and logistical advantages, the joint statement said.
Jayant Acharya of JSW Steel said the partnership combines JSW's domestic presence and execution capabilities with POSCO's technological expertise.
He noted that the collaboration is aligned with India's Atmanirbhar Bharat initiative and aims to build a globally competitive hub serving both domestic and international markets.
"This partnership brings together JSW's proven execution capabilities and strong domestic footprint with POSCO's technological leadership in steelmaking. The proposed venture aligns with India's vision of Atmanirbhar Bharat and will help create a globally competitive manufacturing hub to serve both domestic and export markets," Acharya said.
POSCO Holdings President Lee Ju-tae said India is central to global steel demand growth and highlighted the trust and shared long-term vision underpinning the collaboration.
He added that the initiative reflects POSCO's commitment to India's industrial development while ensuring value creation for both companies.
"India is central to the future of global steel demand. Our collaboration with JSW is based on mutual trust and a shared long-term vision. This initiative represents our commitment to supporting India's industrial growth while creating long-term value for both organizations," Lee Ju-tae said.
JSW Steel, the flagship company of the USD 23 billion JSW Group, has a current consolidated capacity of 35.7 MTPA, which is set to expand to 43.4 MTPA within three years.
Its Vijayanagar plant in Karnataka is India's largest single-location steel facility.
The company has committed to achieving net-zero carbon emissions by 2050 and sourcing all power from renewable energy by 2030.
POSCO Group, with an annual crude steel production capacity of about 42 million tonnes, operates major integrated steelworks in Pohang and Gwangyang, South Korea. It is pursuing hydrogen-based steelmaking technology to support its 2050 net-zero target.
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