JSW Steel

Companies invest about $663 million in the production of electrical steel

JSW Steel will set up a joint venture with Japan’s JFE Steel Corporation. The companies will invest 55 billion rupees (about $663 million) to set up a plant in Karnataka. This is stated in the company’s announcement on the stock exchange, writes Reuters.

Production is likely to begin in the 2026/2027 fiscal year to further expand capacity to meet the growing demand for grain steel in India. This steel is commonly used as the base material in various transformers.

JSW Steel intends to set up a low-carbon steel production facility. In this way, the company aims to reduce carbon emissions and ensure continuity of supply to Europe after the introduction of the carbon border adjustment mechanism (CBAM). The project required the approval of the company’s board and was expected to be implemented in two stages. The first stage (with a capacity of up to 2 million tons per year) was to be completed shortly before 2030.

The company was also considering the acquisition of foreign assets in Canada and Australia for iron ore and coking coal production, while prioritizing the expansion of its domestic raw material base. In this way, the steelmaker seeks to align its raw material supply chain with its plans to expand Indian production capacity from 28 million to 50 million tons per year by 2030.