[Ferro-Alloys.com] JSW Steel and Japan’s JFE Steel to invest $669 million

JSW Steel and JFE Steel will equally fund Rs 19.66 billion of this investment through equity.

A major joint venture between India’s JSW Steel and Japan’s JFE Steel is set to invest Rs 58.45 billion (around $669 million) to expand production of cold-rolled grain-oriented electrical steel in India. This move aims to meet the rising domestic demand for this energy-efficient steel, important for reducing carbon emissions.

The expansion plans

The investment will increase production capacity in two key plants. At the Nashik plant, production will jump from 50,000 tonnes per year to 250,000 tonnes. This expansion alone will cost Rs 43 billion.

Also, the upcoming Vijayanagar facility’s capacity will rise from 62,000 tonnes to 100,000 tonnes, with Rs 15.45 billion invested. The new capacities will be introduced gradually, starting from fiscal year 2028.

Strategic partnership with green goals

JSW Steel and JFE will equally fund Rs 19.66 billion of this investment through equity. JSW JFE’s Nashik plant was acquired in January from Germany’s Thyssenkrupp for Rs 41.59 billion. Cold-rolled grain-oriented electrical steel is essential for energy applications and helps improve energy efficiency while cutting carbon emissions, supporting India’s green goals.

According to JSW Steel, this investment reflects our commitment to sustainable growth and meeting the demand for advanced steel products. With this growth, the joint venture is ready to enhance its position in India’s steel market and help make cleaner energy technologies.

JSW Steel Limited and Japanese partner JFE Steel Corporation announced a major expansion of grain-oriented electrical steel (GOES) manufacturing capacity in India, investing ?5,845 crore to reach 3,50,000 tonnes per annum production by FY2028.

The expansion involves two facilities under their joint ventures. The Vijayanagar plant in Karnataka will increase capacity to 100,000 tonnes per annum from an earlier planned 62,000 tonnes, while the Nashik facility in Maharashtra will expand five-fold to 250,000 tonnes per annum. Both plants are scheduled for commissioning by FY2028.

This investment, combined with previously announced investments at Vijayanagar and the Nashik facility acquisition, brings total investments to ?15,560 crore. The expansion aims to create India’s largest integrated GOES electrical steel production base.

The move targets surging domestic demand for high-efficiency electrical steel driven by renewable energy projects, energy transition initiatives, electric mobility, and AI data centres. JSW Steel’s Joint Managing Director & CEO Jayant Acharya emphasised the investment’s role in import substitution and supporting India’s energy transition goals.

JSW Steel, part of the $23 billion JSW Group, operates India’s leading integrated steel manufacturing with 35.7 million tonnes per annum (mtpa) consolidated capacity. JFE Steel Corporation, formed in 2003, reported consolidated sales of 3,365 billion yen and crude steel output of 23.20 million tonnes in fiscal 2025.

The shares of JSW Steel Limited were trading at ?1,040.30 up by ?12.50 or 1.22 per cent on the NSE at 11.50 am.

• [Editor:tianyawei]