JSW Steel to Set Up 0.5 Million Tonne Scrap Processing Facility in Chennai

JSW Steel has announced plans to establish a 0.5 million tonnes per year (mnt/year) scrap processing facility in Chennai, marking a significant step in the company’s expansion of its sustainable steel initiatives. The facility will source and process scrap from automobiles and white goods manufacturers, supplying its steel plants under construction at Vijayanagar in Karnataka and Kadappa in Andhra Pradesh.

According to Jayant Acharya, Joint Managing Director and CEO of JSW Steel, the Chennai unit will replicate the highly efficient scrap supply chain model already developed in western India. “We sourced about 2.25 million tonnes of scrap in the western region last fiscal, and we aim to expand this network across southern India,” Acharya said.

The new Chennai facility complements JSW’s ongoing metal recycling plant in Raigad, Maharashtra, which is being developed by its subsidiary NSL Green Steel Recycling. The company had initially invested INR 175 crore in a joint venture with New Zealand’s National Steel Holdings before acquiring full ownership in 2023.

Officials highlight that the facility will handle various scrap grades, ensuring flexibility in sourcing and processing based on commercial viability. Southern recyclers already associated with JSW Steel largely follow an inclusive approach, helping formalize the informal scrap sector while influencing regional recycling trends. Initial capacity utilization is expected at 30-40 percent, gradually increasing as the supply chain stabilizes.

The Chennai unit aligns with JSW Steel’s broader decarbonization strategy, focusing on maximizing scrap usage to reduce carbon emissions in steelmaking. In parallel, the company has initiated green hydrogen production at its Vijayanagar plant as part of the “Green Edge” initiative, aiming to manufacture low-carbon steel for domestic and international markets.

With this strategic expansion, JSW Steel reinforces its commitment to sustainable growth, strengthening the southern India scrap ecosystem while advancing its vision of green steel. The move is expected to enhance scrap collection efficiency, boost recycling formalization, and encourage technological adoption among competitors, solidifying JSW Steel’s leadership in eco-friendly steel production.