Companies invest around US$663 million in the production of electrical steel
JSW Steel will establish a joint venture with Japan's JFE Steel Corporation. The companies will invest 55 billion rupees (about $663 million) to establish a factory in Karnataka. This is stated in the company's announcement on the stock exchange, writes Reuters.
Production is likely to begin in fiscal 2026/2027 to further expand capacity and meet the growing demand for steel grains in India. This steel is commonly used as a base material in various transformers.
JSW Steel intends to set up a low carbon steel production unit. 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 approval from the company's board of directors and was scheduled 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 the production of iron ore and coking coal, while prioritizing the expansion of its domestic raw material base. In this way, the steelmaker seeks to align its raw materials supply chain with its plans to expand Indian production capacity from 28 million to 50 million tons per year by 2030.
