JSW Steel & POSCO JV for 6 MTPA Steel Plant in Odisha

New Delhi, Apr 17 (PTI) JSW Steel board on Friday approved a proposal to sign agreements with South Korea-based POSCO Group to enter into a joint venture to set up a 6 million tonne steel project in India.

In an exchange filing, JSW Steel said the joint venture project is proposed to be set up in Odisha.

"Board of Directors has approved entering into a Share Subscription and Joint Venture Agreement, with POSCO Co., Ltd and POSCO- India Private Limited (together referred to as "POSCO Group") through which Saffron Resources Private Limited ("Saffron"), a wholly owned subsidiary of the Company would become a 50:50 Joint Venture between the Company and POSCO Group," JSW Steel said.

The proposed joint venture would set up a greenfield 6 MTPA integrated steel plant in Odisha, the company said.


Saffron possesses 887 acres of land in the state that may be used to set up the proposed plant.

JSW Steel said further to share subscription and joint venture agreement, the POSCO Group will subscribe to shares of Saffron, for a consideration of Rs 508.8 crore, subject to closing adjustments.

On the rationale, the filing said, "The parties propose to enter into a joint venture to set up a greenfield 6 MTPA integrated steel plant in Odisha, India."

The JV will deepen strategic ties between the two steel producers. An association with POSCO Co. Ltd will enable the company to form a strategic partnership for access to technology and manufacturing of high-grade steel products for automotive and other applications.

JSW Steel and POSCO Group will have the right to appoint an equal number of directors in Saffron.