JSW Steel Board Approves Proposal to Form Joint Venture with POSCO for 6 MTPA Steel Plant

JSW Steel Approves Joint Venture with POSCO Group to Establish 6 Million Ton Steel Project in India

JSW Steel's Board of Directors has approved a proposal to sign agreements with the South Korea-based POSCO Group to establish a joint venture for a 6 million tonne steel project in India. The proposed joint venture project is planned to be set up in Odisha, a state in eastern India.

According to an exchange filing by JSW Steel, the joint venture project will be established through Saffron Resources Private Limited, a wholly-owned subsidiary of the company. The joint venture will be a 50:50 partnership between JSW Steel and POSCO Group, with Saffron Resources acting as the joint venture entity.

The proposed joint venture will establish a greenfield 6 MTPA integrated steel plant in Odisha, utilizing the 887 acres of land owned by Saffron Resources in the state. Under the terms of the proposed joint venture, POSCO Group will subscribe to shares of Saffron for a consideration of Rs 508.8 crore, subject to closing adjustments.

The joint venture is expected to deepen strategic ties between JSW Steel and POSCO Group, enabling the company to form a strategic partnership for access to technology and manufacturing of high-grade steel products for automotive and other applications. The joint venture will also provide JSW Steel with the right to appoint an equal number of directors in Saffron Resources, alongside POSCO Group.

| Company | Location | Steel Production Capacity | | --- | --- | --- | | JSW Steel | India | - | | POSCO Group | South Korea | - | | Proposed Joint Venture | India (Odisha) | 6 MTPA |