JSW Steel and JFE Steel Announce Rs 15,750 Crore Joint Venture to Boost Capacity and Drive Long Term Growth

JSW Steel has announced a significant strategic move by entering into a joint venture with Japan based JFE Steel, marking one of the most important partnerships in the Indian steel sector this year. Valued at Rs 15,750 crore, the collaboration will create a balanced fifty fifty venture aimed at expanding operational capacity and strengthening long term growth.

As part of this agreement, the integrated steel facility of Bhushan Power and Steel in Odisha will be transferred to the newly formed entity. The plant, acquired by JSW Steel in 2021 through the insolvency process, has undergone a remarkable turnaround. What was once a struggling unit with an annual capacity of two point seven five million tonnes has grown into a profitable operation with an expanded capacity of four point five million tonnes. The facility currently provides employment to nearly twenty five thousand workers and remains an important contributor to Odisha’s industrial economy.

JFE Steel stated that the joint venture will focus on increasing crude steel output to ten million tonnes by the year 2030. The partnership brings together JFE’s advanced technological expertise and JSW Steel’s proven strengths in execution and operational efficiency, creating a strong foundation for accelerated value creation.

JSW Steel highlighted that the transaction will also allow the company to monetise part of its investment in Bhushan Power and Steel while continuing to participate in the future growth of the new venture. The cash inflow from the deal will further enhance the company’s financial flexibility, strengthen its balance sheet and support its broader expansion plans.

To facilitate the joint venture structure, JSW Steel is moving forward with the amalgamation of Piombino Steel, the current holding company of Bhushan Power and Steel. Piombino Steel is mostly owned by JSW Steel with the remaining stake held by JSW Shipping and Logistics.

The announcement comes at a time when JSW Steel’s share price traded slightly lower in the market, though analysts believe the long term strategic value of the partnership positions the company strongly for future demand and capacity growth across India’s steel sector.