On October 21, senior executives from both companies signed an MOU for business cooperation in steel, secondary battery materials, and renewable energy sectors in Mumbai, India
Initiating a joint project to construct an integrated steel mill with an annual capacity of 5 million tons in India as part of a global upstream investment priority strategy
Chairman In-hwa Chang states, “We will actively pursue group-level future growth investments, such as overseas investments in upstream steel processes, to secure a substantial competitive advantage”
Exploring group-level business collaborations in secondary battery materials and renewable energy… Establishing regular executive exchange meetings to monitor project progress
POSCO Group is advancing plans to build an integrated steel mill in India, a growing market with a population of 1.4 billion.
On October 21, POSCO Group signed an MOU with JSW Group, India’s leading steel company, in Mumbai to collaborate on business ventures in the steel, secondary battery materials, and renewable energy sectors. Senior executives from both companies attended the signing ceremony, including POSCO Group Chairman In-hwa Chang and JSW Group Chairman Sajjan Jindal.Under the MOU, POSCO Group and JSW Group will collaborate on various business opportunities in key sectors such as steel, secondary battery materials, and renewable energy. A joint project to construct an integrated steel mill with an annual capacity of 5 million tons is planned in the Odisha region of India, with considerations for future expansion. Additionally, the two groups aim to strengthen their group-level cooperation by exploring diverse business opportunities and fostering comprehensive partnerships.
In-hwa Chang stated, “We look forward to contributing to the economic development of both Korea and India alongside JSW Group and leading the transition to an eco-friendly era. To overcome economic bloc formation and secure a substantial competitive advantage, we will actively pursue group-level future growth investments, such as expanding overseas investments centered on upstream and midstream steel processes.”
This business collaboration aligns with the seven future innovation initiatives announced following Chairman In-hwa Chang’s appointment, specifically the ‘Rebuilding Steel Competitiveness’ initiative. The cooperation with JSW Group is part of a strategic priority to secure high-growth and high-profit markets centered on global upstream and midstream processes in regions such as India and North America. Following the MOU, both companies have agreed to establish regular executive exchange meetings to continuously monitor joint project progress.
Furthermore, in the field of secondary battery materials, POSCO Group plans to actively seek business cooperation with JSW Group through joint investments and technology development along the secondary battery materials value chain. The two companies intend to expand their collaboration in the renewable energy sector, starting with a self-supply renewable energy project for the jointly constructed integrated steel mill. Given its abundant solar and wind resources, India is considered an optimal location for renewable energy production.
India is projected to be the world’s largest growth market, with an expected average annual economic growth rate of 6.7% by 2030. According to World Steel Dynamics (WSD), a specialized steel market analysis firm, India’s steel demand is expected to grow at an average annual rate of 7%, reaching 190 million tons by 2030.
JSW Group is a $24 billion Indian conglomerate with a diverse portfolio consisting of interests in steel, energy, infrastructure, cement, paints, realty, e-platforms, mobility, defence, sports, and venture capital. The Group’s flagship company, JSW Steel, operates multiple integrated steel plants in India, US, Italy with a total global capacity of 35.7 MTPA (including 5 MTPA under commissioning). JSW Energy, the second largest listed entity of the Group, is a leading independent power producer with platform capacity of 19.2 GW. Recently, JSW Group entered the electric vehicle and battery sectors by acquiring a stake in MG Motors India. The Group is committed to shaping a sustainable future through its investments in green energy, electric mobility, and innovative technologies.
POSCO Group has been successfully conducting business in India, operating a cold-rolling and plating plant with an annual capacity of 1.8 million tons in Maharashtra and five steel processing plants in Delhi and Chennai. Through this strategic collaboration with JSW Group, POSCO Group expects to further strengthen its presence in India, the world’s most populous country with substantial growth potential.
Meanwhile, POSCO Group announced its 2024 management vision titled ‘Materials for the Future, Innovation Towards World-Class,’ declaring its ambition to double its consolidated sales and quadruple operating profits by 2030, transforming into a world-class global leader in the materials sector.
▲On October 21, POSCO Group and JSW Group signed an MOU for business cooperation in the steel, secondary battery materials, and renewable energy sectors. From left: JSW Group Chairman Sajjan Jindal, Chairman In-hwa Chang.