JSW and JFE to invest $669 million in expanding electrical steel production in India

India’s JSW Steel and Japan’s JFE Steel are investing 58.45 billion rupees (approximately $669 million) in expanding the production of cold-rolled electrical steel at two plants in India. This was reported by Reuters with reference to JSW’s stock exchange announcement.

This type of steel is widely used in the energy sector, particularly in the manufacture of transformers. It is highly energy efficient and helps reduce carbon emissions, making it a key material in the green transformation of the energy sector.

The bulk of the investment – 43 billion rupees – will be used to increase the capacity of the plant in Nashik from 50,000 tons to 250,000 tons per year. Another 15.45 billion rupees will be invested in a future plant in Vijayanagar, where production is planned to be increased from 62,000 tons to 100,000 tons per year.

Financing in the amount of 19.66 billion rupees will be provided through the equity capital of both companies in equal shares. JSW did not specify the remaining amount.

It should be noted that the plant in Nashik was acquired from Germany’s Thyssenkrupp in January this year for 41.59 billion rupees. All new capacities are planned to be commissioned in stages, starting in fiscal year 2028.

As GMK Center reported earlier, India continues to implement green steel certification. Such certificates will be issued to plants that meet the emission intensity level in accordance with the taxonomy introduced in the country. Already, 39 manufacturers have applied for certification.