The joint venture company, having partnership of 50:50, will be named JSW JFE Electrical Steel Private Limited. It will have its manufacturing base in Bellary, Karnataka and a planned investment of INR 5,500 crore.
Feb 15, 2024
The JSW Steel Ltd has announced entering into a 50:50 joint venture with Japanese steel manufacturer JFE Steel Corporation to produce grain-oriented electrical steel in India by 2027.
The new company, to be known as JSW JFE Electrical Steel Private Limited, will have a manufacturing base in Karnataka and a planned investment of INR 5,500 crore, the company said in a stock exchange filing.
As per the statement, the groundbreaking ceremony for the partnership took place on February 12 and was attended by the top brass of both the companies.
Electric steel is a kind of high-end steel, which has been modified to possess magnetic properties. It is used in sectors such as electric power and electric vehicles. JSW Group has set its eyes on the electric vehicle business and plans to build an EV ecosystem in Odisha.
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The company will commence production at the facility by fiscal year 2027. It plans to further expand its capacity to meet the growing demand for grain-oriented electrical steel in the Indian market.
As per the company’s filing, “This collaboration is a milestone development, as it will be the first company to have end-to-end manufacturing of grain-oriented electrical steel products in India. The JV company aspires to cater to the surging domestic demand for grain-oriented electrical steel and contribute significantly to the country’s energy infrastructure”.
In May 2021, the JFE Steel Corporation had signed a memorandum of understanding (MoU) with JSW Steel Limited to conduct a viability study and launch a grain-oriented electrical steel sheet-producing and sales joint-venture company in India. The JFE Steel Corporation had planned to complete the feasibility study by 2021 and take steps to set up a joint venture company with JSW.
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Grain oriented electrical steel is considered an important material in the production of various energy-efficient transformers, apart from large, high performance generators. It serves as an essential core material of distribution transformers, power transformers and small transformers in the form of laminated, wound or punched sheets.
“With the steadily increasing demand for electric power, the growing adoption of renewable energy, and the electrification of automobiles, continued growth is forecast in India and globally for grain-oriented electrical steel sheet [that’s] primarily used in transformers,” the company had said in a media statement in 2021.
JSW Steel serves as the main business entity within the diversified JSW Group, which boasts of a total valuation of USD 23 billion. It is involved in various sectors, such as energy, infrastructure, cement, paints, sports and venture capital.
