New Delhi: South Korea’s POSCO Group on Monday signed a final agreement with India’s JSW Steel to jointly invest 10.7 trillion won ($7.3 billion) to build a steel plant in Odisha.
The Joint Venture Agreement (JVA) was signed in the presence of POSCO Group chairman Jang In-hwa, POSCO president Lee Hee-geun, JSW Group chairman Sajjan Jindal and JSW Steel MD Jayant Acharya.
Under the agreement, POSCO and JSW Steel will each hold a 50% stake in the project, an integrated steel mill encompassing the entire production process at a single site.
The target date for competition of the steel plant — which will have a capacity of 6 million tons per annum (MTPA) — is 2031.
POSCO and JSW Steel previously signed a memorandum of understanding in 2024 and a nonbinding heads of agreement last year for the project.
“Through this joint investment, we
will combine POSCO’s innovative steel technology with JSW Group’s strong local competitiveness. We will also strive to create future value, and contribute to the industrial development and economic growth of both countries,” POSCO CEO Lee Hee-geun said.
The substantial investment is part of a strategic decision to establish a production hub in India and strengthen its global supply chain.
Lee-Modi summit talks
The joint venture comes at a time when South Korean President Lee Jae Myung said Prime Minister Narendra Modi are engaging in bilateral summit talks in New Delhi.
Lee agreed to cooperate on stabilising energy supply chains to better navigate uncertainties stemming from the US-Iran war and the volatility it is causing in the Middle East, reported IANS.
Lee said he and the Indian Prime Minister focused on expanding trade and investment, and exploring new opportunities in critical minerals, energy, artificial intelligence (AI), finance and shipbuilding, among other sectors.
“In light of recent developments in the Middle East, we will continue to strengthen bilateral cooperation to ensure a stable supply of energy resources and key raw materials, including naphtha,” Lee said during a joint press announcement.