Key Highlights
- JSW Steel approves 50:50 joint venture with POSCO Group to set up integrated steel plant in Odisha.
- Proposed plant capacity is 5.0 MTPA greenfield integrated steel facility.
- POSCO to invest around ₹508.8 crore for equity stake in Saffron Resources.
- Saffron Resources Private Limited will act as the joint venture entity.
- Project will be developed on 887 acres of land in Odisha.
- JSW Steel aims to reach 50 MTPA production capacity in India by FY31.
- POSCO has global steel production capacity of around 45 MTPA.
- Transaction expected to be completed by December 31 2026 subject to approvals.
JSW Steel Limited has approved a strategic joint venture with South Korea-based POSCO Group to establish a 5.0 million tonnes per annum (MTPA) greenfield integrated steel plant in Odisha, according to a regulatory filing.
The joint venture will be executed through Saffron Resources Private Limited, a wholly owned subsidiary of JSW Steel, which will be converted into a 50:50 partnership between JSW Steel and POSCO Group.
Investment and Structure Details
As part of the agreement, POSCO Group will subscribe to equity shares of Saffron Resources for a consideration of approximately ₹508.8 crore, subject to closing adjustments. Following this investment, both companies will hold equal ownership in the venture.
The project will be developed on land owned by Saffron Resources in Odisha, which currently holds 887 acres, including 595 acres of freehold land and 292 acres of leasehold land.
Strategic Importance of the Joint Venture
The partnership is expected to strengthen JSW Steel’s long-term growth strategy by leveraging POSCO’s advanced steelmaking technologies and global expertise. The joint venture will focus on manufacturing high-grade steel products, particularly for automotive and specialised applications.
JSW Steel stated that the collaboration will deepen strategic ties between the two companies and enable access to cutting-edge manufacturing capabilities.
Capacity Expansion Plans
JSW Steel is currently one of India’s leading integrated steel producers with a total capacity of 35.7 MTPA, including 34.2 MTPA in India and 1.5 MTPA in the United States. The company aims to scale its domestic production capacity to 50 MTPA by FY31.
POSCO Group, headquartered in Pohang, South Korea, has an annual steel production capacity of approximately 45 MTPA and is globally recognised for its competitiveness and technological leadership in steel manufacturing.
Timeline and Regulatory Compliance
The definitive agreements are expected to be executed in due course, with the transaction anticipated to be completed by December 31, 2026, subject to customary approvals and conditions.