JSW Steel and POSCO have entered into a 50:50 joint venture to establish a greenfield integrated steel plant in Odisha.
The agreement marks a significant step in strengthening industrial and economic ties between India and South Korea.
The joint venture will be executed through Saffron Resources Private Limited, a wholly owned subsidiary of JSW Steel, which will now be converted into an equal partnership entity between the two companies.
6 MTPA Steel Plant Planned with Strategic Investment
The proposed facility will have an initial production capacity of 6 million tonnes per annum (MTPA). As per regulatory filings, POSCO will invest approximately ₹508.8 crore in the venture by subscribing to shares in Saffron Resources.
The company already holds around 887 acres of land in Odisha, including both freehold and leasehold parcels, earmarked for the project.
Both JSW Steel and POSCO will appoint an equal number of directors to the board, ensuring balanced governance and decision-making.
Project Timeline and Expansion Goals
The companies aim to complete the transaction and share issuance by December 31, 2026, subject to standard conditions. The deal is structured at arm’s length and does not fall under related party transactions.
For JSW Steel, this collaboration aligns with its long-term vision of expanding its crude steel capacity from 35.7 MTPA to 50 MTPA in India by the financial year 2031. POSCO, headquartered in Pohang, currently has a production capacity of approximately 45 MTPA and is the largest steel producer in South Korea.
Boost to India–South Korea Strategic Partnership
The announcement comes during the ongoing India visit of Lee Jae Myung, highlighting the growing momentum in bilateral relations.
India and South Korea elevated their ties to a “Special Strategic Partnership” in 2015, and cooperation has since expanded across sectors such as advanced manufacturing, semiconductors, defence production, green energy, and infrastructure.
Focus on Trade, Technology, and Investment
The joint venture reflects a broader push to enhance trade and investment flows between the two nations. It is also expected to contribute to India’s “Make in India” initiative by strengthening domestic manufacturing capabilities.
The ongoing diplomatic engagements, including discussions with Narendra Modi and S. Jaishankar, are likely to further deepen collaboration in key sectors.
Private Sector to Play Key Role in Economic Growth
As part of the visit, President Lee is also participating in a business forum at Bharat Mandapam, where industry leaders from both countries are exploring opportunities in supply chain resilience and investment partnerships.
The JSW–POSCO venture is expected to serve as a catalyst for future collaborations and reinforce India’s position as a global manufacturing hub.
