JSW Steel Join Forces with JFE Steel to Construct New Manufacturing Facility

SEATTLE (Scrap Monster): JSW Steel announced its decision to partner with Japanese JFE Steel to invest over $1 billion in setting up a new full-fledged manufacturing facility for specialty steel in India. The project would help the country to reduce its reliance on imports of high-end alloys.

Earlier, the two companies had initiated a feasibility study towards domestically manufacturing grain oriented electrical steel, which is primarily used in making energy efficient transformers, generators and motors. The study in in its final stages and a final decision on the project is expected before the end of this year.

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The project will be implemented at the company’s flagship Vijayanagar Steel Complex in the South Indian state of Karnataka, said Seshagiri Rao, Joint Managing Director, JSW Steel. The high-end alloy market in India, which currently depends entirely on imports, is expected to witness huge growth in coming years, he added.

The project will likely be benefitted by the government’s recently announced production linked incentive (PLI) scheme for specialty steel. The over 6,300 crore scheme offers highest support to electrical steel.

It must be noted that JFE, through its European subsidiary, owns 15% stake in the Indian steelmaker.