On the 18th, the POSCO Group announced that it has signed a Heads of Agreement (HOA·Non-Binding Heads of Agreement) related to a joint steel mill project with India's leading steel company JSW Group in Mumbai. The production scale was decided to be expanded from 5 million tons (t), which was reviewed last year, to 6 million t.

POSCO and JSW Group plan to establish a joint venture to build the steel mill. Equity will be shared equally at 50% each. The two groups are expected to finalize the site after a feasibility study.

On the 18th, POSCO Group and JSW Group sign a business cooperation HOA (Head of Agreement). From left to right are Arun Maheshwari, Director of JSW Group; Jayant Acharya, President of JSW Group; Lee Joo-tae, President of POSCO Holdings; and Shin Seong-won, Head of POSCO Management Planning Division. /Courtesy of POSCO Holdings

A steel mill refers to an integrated steelworks with processes for producing molten iron by melting iron ore and coking coal in a blast furnace, and then using this molten iron to produce steel products through a series of iron-making, steel-making, and rolling processes. JSW Steel (JSW STEEL), the largest subsidiary of JSW Group, currently operates four integrated steel mills.

The two groups plan to negotiate detailed investment conditions and undergo approval procedures before signing the main contract. To this end, they decided to establish regular exchange meetings involving top management.

Lee Joo-tae, CEO of POSCO Holdings, said, "India is a key growth axis in the global steel market," adding, "We will strive to ensure that the collaboration between Korea's and India's leading steel companies contributes to the development of both countries' industries."

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