JSW Steel and Japan’s JFE Steel are finalizing the establishment of a joint venture

The Japanese steelmaker has already invested in the acquisition of a 25% stake. Indian steelmaker JSW Steel has completed the main stages of establishing a joint venture with Japan’s JFE Steel Corporation for the Bhushan Power and Steel Limited (BPSL) business. This was reported by Tube & Pipe India.

JFE Steel has invested 78.75 billion Indian rupees ($833 million) as the first tranche in JSW Kalinga Steel Limited. The investment was made through the placement of 226.9 million shares, giving JFE a 25% stake in fully diluted shares. This move is part of a joint venture agreement signed between the parties in December 2025.

The partners now jointly control JSW Kalinga and its subsidiary JSW Sambalpur Steel Limited, strengthening their collaboration in the steelmaking segment.

The Japanese company will acquire an additional 25% stake for the same amount in the next phase.

The joint venture is based on Bhushan Power & Steel Limited (BPSL), which JSW Steel acquired in 2021 through the Insolvency and Bankruptcy Code process. BPSL will be transferred to the joint venture on a 50:50 basis. Thanks to this partnership, JSW Steel’s strengths in the local market are expected to be complemented by JFE Steel’s advanced production technologies.

As a reminder, in February 2024, it was announced that JSW Steel and JFE Steel would invest 55 billion rupees (approximately $663 million) in the construction of a plant in the state of Karnataka. Production is likely to begin in the 2026/2027 fiscal year with the aim of expanding capacity to meet the growing demand for grain-oriented electrical steel.