NEW DELHI: JSW Steel Limited entered into a 50:50 joint venture (JV) with Japan’s JFE Steel Corporation for electrical steel production in India.
The new company, JSW Electrical Steel Private Limited, to be renamed JSW JFE Electrical Steel Private Limited, it said in an exchange filing on Tuesday.
It will have a manufacturing base at Bellary in Karnataka with an investment of Rs 5,500 crore. The joint venture will have end-to-end manufacturing of grain oriented electrical steel products in India, catering to the surging domestic demand. Grain-oriented electrical steel plays an important role in energy-efficient transformers production in laminated, wound, or punched sheet form. It serves as the core material for distribution transformers, power transformers, and small transformers, it said.
A groundbreaking ceremony marking the initiation of the partnership was held on Monday. The facility is targeting to commence production in the fiscal year 2027. Kitano, President and CEO of JFE Steel, Sajjan Jindal, Chairman and Managing Director of JSW Steel were present at the event.
JSW Steel said it plans to further expand its capacity of the upcoming electrical steel facility to meet the growing market demand for grain-oriented electrical steel in the country.
JSW’s subsidiary JSW Utkal Steel Limited last month got possession of 2677.80 acres of forest land in Odisha to set up a greenfield integrated steel plant (ISP).
It already got a nod from the Union Minister of Environment, Forest and Climate Change. The plant is set to have 13.2 million tonne per annum (MTPA) capacity with a capital expenditure of `65000 crore, which will be implemented in phases.