JSW Steel, POSCO Partner for 6 MTPA Greenfield Steel Plant in Odisha

JSW Steel has taken a major step towards expanding its production capacity by entering into a strategic partnership with South Korea’s POSCO Group to develop a greenfield integrated steel plant in Odisha. The joint venture will be executed through Saffron Resources, a wholly owned subsidiary of JSW Steel, which will now be converted into a 50:50 JV entity between the two companies.

The project is planned with a capacity of 6 million tonnes per annum and will be developed on approximately 887 acres of land that has already been secured in Odisha. This includes 595 acres of freehold land and 292 acres of leasehold land, ensuring readiness for project execution without major land acquisition hurdles. The partnership reflects both companies’ long term commitment to strengthening their presence in the Indian steel sector.

As part of the financial structure, POSCO will invest around Rs 508 crore in the joint venture through share subscription. The transaction is expected to be completed by December 2026, subject to necessary approvals. Both JSW Steel and POSCO will have equal representation on the board, ensuring balanced decision making and operational control.

This collaboration is aligned with JSW Steel’s broader goal of expanding its production capacity to 50 million tonnes per annum by FY31. For POSCO, the partnership marks a significant move to strengthen its footprint in one of the world’s fastest growing steel markets.

The project also comes at a time when India and South Korea are deepening economic cooperation across sectors such as manufacturing, infrastructure, semiconductors and green energy. The proposed steel plant is expected to support industrial growth, boost local employment and enhance supply capabilities for infrastructure and construction projects.

With rising demand for steel driven by infrastructure expansion, logistics development and urbanisation, this joint venture is expected to play a crucial role in meeting future demand while reinforcing Odisha’s position as a key steel manufacturing hub in India.