Construction of an integrated steel mill in Odisha with an annual crude steel capacity of 6 million tons… Aiming for completion by 2031

A representative case of POSCO Group’s “Complete Localization Strategy” to preoccupy the high-growth Indian steel market

Establishing a “Virtuous Cycle Growth Model” where global profits fund domestic decarbonization transition investments

POSCO (President: Lee, Hee-geun) is embarking on a significant expansion of its global steel business by commencing the construction of an integrated steel mill* in India, a high-growth market with a population of 1.46 billion.

*Integrated Steel Mill: A steel plant equipped with the full range of processes, including ironmaking (producing molten iron), steelmaking (removing impurities), and rolling (producing finished steel products)

On the 20th (local time), POSCO signed a Joint Venture Agreement (JVA) with JSW Steel, India’s leading steelmaker, to build an integrated steel mill in India. This collaboration, built on a strong partnership between the two companies, aims to target high-profit markets within India and further strengthen the global steel supply chain.

The signing ceremony was attended by top executives from both groups, including Chang, In Hwa, CEO of POSCO HOLDINGS, Sajjan Jindal, Chairman of JSW Group, Lee, Hee-guen, President of POSCO, and Jayant Acharya, CEO of JSW Steel.

Following a direct meeting and Memorandum of Understanding (MOU) between CEO Chang, In Hwa and Chairman Sajjan Jindal in October 2024, the two companies solidified their cooperation through a HOA* in July 2025. With this final contract, the joint venture now enters the full-scale construction and execution phase. The joint venture is structured as an equal partnership, with each company holding a 50% stake.

*HOA: Non-Binding Heads of Agreement.

The new integrated steel mill will be blast-furnace-based, featuring a complete production system—from ironmaking, steelmaking, and hot rolling to cold rolling/galvanizing—capable of producing high-value-added premium steel. The facility will have an integrated production capacity of 6 million tons of crude steel. A site has been secured in Odisha, offering proximity to iron ore mines and efficient access to logistics, power, and infrastructure. The project aims for completion by 2031, following a 48-month construction period after groundbreaking.

Both companies are reviewing plans to combine POSCO’s low-carbon operational technology and Smart Factory capabilities with JSW’s renewable energy infrastructure to supply a portion of the plant’s power with renewable energy. Through this, they intend to establish a low-carbon production system that aligns with the “Green Steel Taxonomy” established by the Indian government in December 2024, the first of its kind in the world.

President Lee, stated, “Through this joint venture, we will combine POSCO’s innovative steelmaking technology with JSW Group’s strong local competitiveness. We are committed to creating future value and making a substantial contribution to the industrial development and economic growth of both nations.”

CEO Jayant Acharya commented, “This partnership with POSCO will serve as an opportunity to unite the vision and determination of both companies. We expect this to be a significant step in strengthening the Indian steel ecosystem and solidifying the national industrial value chain.”

The Indian steel mill construction project, a long-held ambition for POSCO, has finally come to fruition as the “Complete Localization Strategy” achieved tangible results following the inauguration of CEO Chang.

Since 2004, POSCO has explored entering the upstream sector in India on four separate occasions but faced challenges such as finding the right joint venture partner and securing land. However, the company successfully carried out downstream investments, including electrical steel and automotive steel sheet plants, and has accumulated extensive business experience in India by strengthening its partnership with the JSW Group, which owns India’s leading steelmaker.

A representative example of this robust partnership occurred in 2022 when the Pohang Steelworks was flooded due to Typhoon Hinnamnor. At that time, JSW Group readily provided POSCO with equipment originally being manufactured for its own hot rolling mill, significantly accelerating the recovery of POSCO’s No. 2 Hot Rolling Mill.

Driven by GDP growth, urbanization, population increases, and manufacturing expansion, India is a high-growth market where steel consumption has grown by over 10% annually in recent years. In particular, demand for high-value-added steel is expected to rise as the premium market for automotive and home appliances expands due to increasing incomes and a shift toward premium consumption patterns.

POSCO Group plans to directly overcome the crisis of global protectionism through its “Complete Localization Strategy,” which includes building the integrated steel mill in India, investing in the steel plant in Louisiana, U.S., and collaborating with Cleveland-Cliffs. Meanwhile, in Korea, the company is focusing on high-value-added products, transitioning to Intelligent Factories through the integration of AI and robotics, and developing Korean-style hydrogen reduction steelmaking to secure future growth drivers.

Notably, as CEO Chang mentioned in his 2026 New Year’s address, this investment is highly significant as it establishes a crucial bridgehead for a virtuous cycle: utilizing profits generated in global markets to fund decarbonization transition investments back in Korea.

▲ POSCO signed a Joint Venture Agreement with JSW Steel, India’s No. 1 steelmaker, on the 20th to build an integrated steel mill. (From right) Chang, In Hwa, CEO of POSCO HOLDINGS; Lee, Hee-guen, President of POSCO; Jayant Acharya, CEO of JSW Steel; and Sajjan Jindal, Chairman of JSW Group.

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.