Updated February 13th, 2024 at 12:40 IST
JSW Steel inks pact with Japan's JFE Steel for India's first grain-oriented electrical steel plant
The facility aims to start production by FY27 and expand capacity to meet growing demand for grain oriented electrical steel in India.
JSW Steel JFE Steel partnership: Steel major JSW Steel has announced a 50:50 joint venture with Japan's JFE Steel Corporation, for the production of grain-oriented electrical steel in India. This marks a significant milestone in India's journey towards self-sufficiency in this critical material used in energy-efficient transformers.
The newly formed company, JSW Electrical Steel Private Limited, which will be renamed JSW JFE Electrical Steel Private Limited, is set to become the first entity in India to undertake end-to-end manufacturing of grain-oriented electrical steel products. With a planned investment of Rs 5,500 crores, the manufacturing facility will be located in District Bellary, Karnataka.
The facility is expected to commence production by the fiscal year 2027 and plans to expand its capacity further to meet the rising demand for grain-oriented electrical steel in India.
Grain-oriented electrical steel is a crucial material used in the production of energy-efficient transformers, serving as the core material for distribution transformers, power transformers, and small transformers. The collaboration between JSW Steel and JFE Steel aims to cater to the surging domestic demand for this specialised steel product and contribute significantly to the country's energy infrastructure.
Sajjan Jindal, Chairman & Managing Director of JSW Steel, said “This partnership will not only make India self-sufficient in GOES but also contribute significantly to our nation's energy security and infrastructure development.” Kitano, President & CEO of JFE Steel, said “We are confident that this joint venture will leverage the strengths of both companies and contribute to the growth of the Indian economy.”
Published February 13th, 2024 at 12:40 IST