SEOUL, Aug. 18 (Yonhap) — South Korean steelmaker POSCO Group said Monday it has signed an initial agreement with India’s JSW Group to jointly build a steel plant in India.
The two companies recently signed a non-binding heads of agreement (HOA) to construct an integrated steel mill with an annual output capacity of 6 million tons in the world’s most populous country, POSCO said in a press release.
“India is a core growth engine of the global steel market. Through this partnership, the two countries’ leading steelmakers will work to create future value and contribute to industrial growth in both nations,” POSCO Holdings President Lee Ju-tae said.
This file photo, taken in Mumbai on July 9, 2025, and provided by POSCO Group, shows JSW Group President Jayant Acharya (2nd from L), POSCO Holdings President Lee Ju-tae (3rd from L) and other officials posing after signing a non-binding heads of agreement (HOA) for a 50:50 steel plant project in India. (PHOTO NOT FOR SALE) (Yonhap)
The eastern Indian state of Odisha is being considered as the site for the envisioned plant due to its abundant raw materials, including coal and iron ore. The final location will be determined through a feasibility study, POSCO added.
The plant is aimed at meeting India’s rapidly growing steel demand. Local steel consumption has risen by 9-10 percent annually over the past three years.
POSCO and JSW plan to sign a final agreement once details are settled and the project receives approval from the local government. Both companies intend to make a 50:50 investment in the venture.
POSCO did not disclose the construction timetable or investment amount.
The HOA follows a memorandum of understanding (MOU) signed in October to collaborate in steelmaking and rechargeable battery materials.
In April, POSCO Group said it plans to invest in Hyundai Steel Co.’s US$5.8 billion steel mill project in the United States as part of its strategy to cope with U.S. President Donald Trump’s tariffs on steel imports.
The investment decision came after the Trump administration imposed a 25 percent tariff on all steel and aluminum imports on March 12, before doubling the rate to 50 percent in June.
Steel products are piled up at a port in Pyeongtaek, about 60 kilometers south of Seoul, in this file photo from March 11, 2025, a day before the U.S. government’s 25 percent tariffs on all steel and aluminum imports kick off. (Yonhap)
kyongae.choi@yna.co.kr