JSW Steel to launch new blast furnace at Dolvi steel plant in 2026

India’s JSW Steel is to launch a new blast furnace at its Dolvi steel plant in Maharashtra with a production capacity of 4.5 million tons per year in 2026. This was reported by S&P Global with reference to technology provider SMS Group.

Construction of the blast furnace is expected to be completed in March 2026. The steelmaker’s steel production capacity is currently 10 million tons per year, with a blast furnace and an electric arc furnace in operation. The new unit will increase production by 45%.

According to SMS Group, the companies’ cooperation involves the construction of a state-of-the-art blast furnace that will incorporate advanced technologies and green features to help reduce the company’s carbon footprint and improve environmental sustainability.

JSW Steel’s annual steel production in India is about 27.7 million tons per year. By 2026, the company plans to increase it to 37 million tons per year.

In addition to JSW, several other Indian steelmakers are also working on expanding their production capacity to meet the potential growth in demand from India and other countries in the coming years. Domestic demand for steel products is likely to be driven by mega-infrastructure projects.

The federal government of India plans to achieve the target of increasing the country’s annual steel production capacity to 300 million tons by 2030 as part of the National Steel Policy 2017 plan. As of last year, this figure was about 160 million tons.

In February 2024, JSW Steel announced the start of construction of a new steel plant in Paradip, Odisha, with an annual capacity of 13.2 million tons of steel. The steel complex will include its own power plant, berths with forklifts and a cement shop. Investments in the integrated steel plant are estimated at around 650 billion rupees ($7.8 billion).

As GMK Center reported earlier, 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 the plant in Karnataka. Production is likely to start in FY2026/2027 to further expand capacity to meet the growing demand for grain steel in India.