While the location for the plant is not finalized yet, Odisha is among the leading options, the company said.
Shares of JSW Steel rose 2.7% on Monday, after the company announced a partnership with POSCO to set up a steel plant in India.
According to a press release dated August 18, JSW Steel and South Korea’s POSCO Group signed a non-binding Heads of Agreement (HoA) to jointly explore setting up a 6 million tonnes per annum (MTPA) integrated steel plant in India.
Setting Up 6 MTPA Plant In India
The agreement builds on a Memorandum of Understanding (MoU) signed in October 2024 and sets the framework for a proposed 50:50 joint venture between the two companies. The move aims to combine JSW’s domestic market presence with POSCO’s advanced technology, strengthening India’s steel-making capacity while supporting the government’s push for self-reliance and export growth.
As the next step, both companies will carry out a detailed feasibility study to determine the project’s final structure. This will include evaluating the potential site, investment requirements, resource availability, and environmental clearances. Odisha, with its rich mineral resources and strategic location, is among the leading options for the plant.
“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,” said Lee Ju-tae, Representative Director and President, POSCO Holdings.
In separate news, JSW Steel is also likely to benefit from a proposed a three-year safeguard duty on select flat steel imports. The move is aimed at protecting the domestic players from the surge in cheap shipments, especially from China.
Retail Sentiment Unchanged
Despite the positive developments, retail sentiment for JSW Steel on Stocktwits remained ‘bearish’. It was ‘bullish’ a month earlier.
The steelmaker had posted a 158% surge in Q1 net profit at ₹845 crore, supported by lower expenses and better operational efficiencies. The revenue from operations came in at ₹43,147 crore, up from ₹42,943 crore in the previous corresponding period.
Year-to-date, the stock has gained over 18%.
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