JSW Steel, POSCO Explore 6 MTPA Steel Plant in India

JSW Steel has entered into a non-binding Heads of Agreement (HoA) with South Korea’s POSCO Group, one of the world’s largest steelmakers.

The agreement sets the stage for the potential development of a 6 million tonnes per annum (MTPA) integrated steel plant in India. This move underscores the commitment of both companies to leverage their expertise and strengthen global partnerships in the steel sector.

Building on Prior Understanding

The HoA builds upon the Memorandum of Understanding (MoU) signed between JSW and POSCO in October 2024. It lays down the preliminary framework for a proposed 50:50 joint venture, bringing together two respected names in the global steel industry.

The signing ceremony took place in Mumbai, attended by Mr. Lee Ju-tae, Representative Director and President of POSCO Holdings, and Mr. Jayant Acharya, Joint Managing Director & CEO of JSW Steel.

Next Steps and Strategic Location

Under the agreement, both companies will conduct a detailed feasibility study. This will help finalise the project’s location, investment structure, resource sourcing, and other key requirements. Odisha has emerged as a strong contender due to its abundant natural resources and logistical advantages, making it an attractive site for the proposed facility.

Industry Implications

If materialised, this plant could significantly boost India’s steel production capacity while enhancing technological collaboration between Indian and global steel leaders. It also aligns with India’s vision to expand its infrastructure and industrial base, supported by growing demand for steel across sectors.

Mr. Jayant Acharya, Joint Managing Director & CEO, JSW Steel, said, “This partnership brings together JSW’s proven execution capabilities and strong domestic footprint with POSCO’s technological leadership in steelmaking. The proposed venture aligns with India’s vision of Atmanirbhar Bharat and will help create a globally competitive manufacturing hub to serve both domestic and export markets.”

Mr. Lee Ju-tae, Representative Director and President, POSCO Holdings, added, “India is central to the future of global steel demand. Our collaboration with JSW is based on mutual trust and a shared long-term vision. This initiative represents our commitment to supporting India’s industrial growth while creating long-term value for both organizations.”

JSW Steel Share Price Performance

On August 18, 2025, JSW Steel share price (NSE: JSWSTEEL) opened at ₹1,060.00, touching the day’s high at ₹1,074.40, as of 11:40 AM on the NSE.

Also Read: JSW Steel Q1 Profit Surges to ₹2,184 Crore!

Conclusion

The HoA between JSW Steel and POSCO marks an important milestone in India’s steel industry. By combining JSW’s domestic presence with POSCO’s global expertise, the proposed venture has the potential to create a world-class steelmaking facility and strengthen India’s position in the global steel landscape.

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