NEW DELHI: JSW Steel through its joint venture company JFE Electrical Steel (J2ES) will acquire thyssenkrupp Electrical Steel India for Rs 4,051 crore. The company, in a statement, said Jsquare Electrical Steel Nashik. Jsquare is a wholly owned subsidiary of J2ES, a 50:50 joint venture between JSW Steel and JFE Steel Corporation (JFE), has entered into a share purchase agreement to acquire 100% of equity interest in thyssenkrupp Electrical Steel India (tkES India).
It has entered into other agreements including for licensing/transfer of associated technology package from thyssenkrupp group. tkES India is one of the first manufacturers of grain-oriented electrical steel (GOES) in India with its facility located in Nashik, Maharashtra. The closing of the transaction is subject to regulatory approval.
As per JSW Steel statement, the acquisition provides the company with access to cutting-edge technology, aligning with its strategy of enhancing its value-added portfolio. In February 2024, JFE Steel and JSW established JSW JFE Electrical Steel, a JV for production of GOES, with the aim of establishing an integrated manufacturing system for GOES in India.
J2ES is expected to commence full production in 2027. “Through this acquisition, JSW and JFE will achieve instant market access and can promptly establish an integrated system from manufacturing to sales of GOES in India,” the company said.