JSW, Korea's POSCO to set up steel plant in Odisha
What's the story
JSW Steel and South Korea's POSCO Group have announced a joint venture to build a greenfield integrated steel plant in Odisha. The partnership will be carried out via Saffron Resources Private Limited, a wholly-owned subsidiary of JSW Steel. The facility is expected to have a production capacity of six million tons per annum (MTPA).
Venture specifics
POSCO to invest ₹509cr in Saffron Resources
Saffron Resources holds 887 acres of land in Odisha, including 595 acres of freehold land, and around 292 acres of leasehold land, for the new plant. The POSCO Group will subscribe to shares in Saffron Resources for roughly ₹508.8 crore, subject to the standard closing adjustments. The transaction is being conducted at arm's length and does not fall under related party transactions.
Capacity expansion
Strategic partnership between steel giants
The joint venture is expected to strengthen strategic ties between the two steel giants. For JSW Steel, which currently has a crude steel production capacity of 35.7MTPA, this venture is part of its larger plan to reach a capacity of 50MTPA in India by FY31. POSCO, headquartered in Pohang, South Korea with a manufacturing capacity of roughly 45MTPA, is the biggest steel producer in its home country.
Diplomatic ties
South Korean president's visit to India
The announcement comes as South Korean President Lee Jae-myung, along with First Lady Kim Hea-kyung, arrives in India. This is the first state visit by a South Korean leader in more than eight years and is seen as a major step for South Korea's "Global South" diplomacy, and a "reboot" of the Special Strategic Partnership with India.