The agreement is expected to be finalized by the end of this year

The board of directors of India’s JSW Steel Limited has approved a joint venture with South Korea’s POSCO Group, according to Pragativadi.

Under the agreement, the companies will build an integrated steel plant with an initial production capacity of 6 million metric tons per year in the state of Odisha, India.

Saffron Resources Private Limited, a subsidiary owned by JSW Steel, will serve as the joint venture vehicle, with the parties holding a 50:50 stake. POSCO will invest in the venture by subscribing to its shares. The deal is expected to be finalized by the end of this year.

Saffron Resources already owns approximately 887 acres of land in Odisha, including both freehold and leased plots designated for the project.

For JSW Steel, this partnership aligns with its long-term vision of expanding steelmaking capacity from 35.7 million tons per year to 50 million tons per year in India by the 2030/2031 fiscal year.

Previously, the POSCO Group had proposed investing $12 billion on its own to build an integrated steel plant in Odisha, notes SteelOrbis. However, the project was scrapped in 2017 following prolonged disputes over land acquisition, regulatory hurdles, and resistance from local residents.

As a reminder, in November 2024, JSW Steel and POSCO signed a cooperation agreement, intending to jointly invest 650 billion rupees (about $7.73 billion) in the construction of a steel plant in Odisha. The plant was planned as part of a strategy targeting India’s growing steel market.