Shares of JSW Steel Ltd were trading in the green and 2% higher on Monday, 18 August, after the company said that it has inked a deal with Posco Group, a South Korean steel maker, to study the feasibility of jointly establishing a 6 million tonnes per annum (MTPA) integrated steel plant in India.  

The Indian steelmaker and its international counterpart stated that the HoA expands on the Memorandum of Understanding (MoU) agreed by both parties in October of last year and establishes the general framework for the proposed 50:50 joint venture.  

In its regulatory filing, the company said, “The agreement marks a significant step toward deepening strategic collaboration between two of the world’s most respected steel companies.” 

The HoA was signed in Mumbai by Lee Ju-tae, Representative Director and President of POSCO Holdings, and Jayant Acharya, Joint Managing Director and CEO of JSW Steel.  

Following the signing of the HoA, JSW and Posco will conduct a full feasibility assessment to determine the plant’s location, investment terms, resource availability, and other essential elements, according to the joint statement. Odisha is being evaluated as a significant destination due to its natural resource base and logistical advantages.

Speaking about the potential alliance, JSW Steel CEO and Joint Managing Director Jayant Acharya stated, “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.”

POSCO Holdings Representative directors and President Lee Ju-tae, meanwhile, said, “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.”

Earlier in October last year, the two businesses struck an agreement to build an integrated steel plant in India with an initial capacity of 5 million tonnes per year, as well as ambitions to study battery materials and renewable energy in India. 

JSW Steel and South Korea’s POSCO intend to invest Rs 65,000 crore in their proposed facility in India in the next few years.

At 12:42 pm, the shares of JSW Steel were trading 2.08% higher at Rs 1,067.20 on NSE.

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