JSW, Japan's JFE to invest Rs5,500-cr in electrical steel venture in Karnataka
14 Feb 2024
JSW Steel and Japan's JFE Steel will jointly invest Rs5,500 crore in a steel plant in India to produce electrical grade grain-oriented steel, the companies stated in separate press releases.
The two partners also held a groundbreaking ceremony, on Monday, for construction of the steel plant in ore-rich Bellary district of Karnataka, agreement for which was signed in August 2023.
Grain-oriented electrical steel used in the manufacture of a variety of transformers such as distribution transformers, power transformers and small transformers.
Electric steel is a type of modified steel that has magnetic properties, and is used in electric vehicles.
JSW Group has plans to enter the electric vehicle business and has announced plans to build an EV ecosystem in Odisha.
JSW JFE Electrical Steel Private Limited, subject to all necessary clearances, is expected to start production in the 2027 financial year.
The partners also said, they planned to expand capacity of the joint venture facility depending upon the market for grain-oriented electrical steel in India.
JFE Steel Corporation, one of the world’s leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003. The company operates several steelworks in Japan and numerous branch offices and affiliates throughout the world. JFE Steel has the necessary technology and know-how to produce a wide range of `best-in-class’ products.
The company reported consolidated sales of 2,255 billion yen and consolidated crude steel output of 23.96 million tonnes in the fiscal year ended March 2021.