Bhubaneswar: JSW Steel Ltd and POSCO Group will set up a 6 Million Tonnes Per Annum (MTPA) integrated steel plant in Odisha through a joint venture approved by JSW Steel’s board.
The companies will execute the partnership through Saffron Resources Pvt. Ltd., a wholly owned arm of JSW Steel, which will be converted into a 50:50 joint venture entity, the company said in a regulatory filing.
The planned unit will be developed as a greenfield project and is expected to expand JSW Steel’s manufacturing presence in the country.
Under the agreement, POSCO will invest about Rs 508.8 crore by subscribing to shares of Saffron Resources, subject to closing adjustments. The deal is likely to be completed by December 31, 2026, unless both sides agree to extend the timeline.
Saffron Resources holds nearly 887 acres of land in Odisha, comprising both freehold and leasehold parcels, which may be used for the project.
The move comes about 18 months after the two companies signed an agreement in October 2024 to collaborate in areas such as steelmaking, electric vehicle batteries, and renewable energy.
JSW Steel said the partnership with POSCO Co., Ltd will help it access advanced technology and support the production of high-grade steel for automotive and other applications.
This will be JSW Steel’s third joint venture with an overseas partner, in addition to its existing collaborations with JFE Steel Corp.
JSW Steel has a global crude steel capacity of 35.7 MTPA and is targeting 50 MTPA capacity in India by FY31. POSCO, with around 45 MTPA capacity, is expected to bring technological and operational expertise to the venture.
