POSCO is moving to full-scale construction of an integrated steel mill with a capacity of 6 million tons(t) in India. Aimed at targeting the Indian market where steel demand is expanding, the total investment is estimated to reach $7.289 billion (about 1.076 trillion won).
On the 20th (local time), POSCO said it signed a joint venture agreement (JVA) with India's No. 1 steelmaker, JSW Steel, in India to build an integrated steel mill.
At the signing ceremony, POSCO Group Chairman Chang In-hwa and JSW Group Chairman Sajjan Jindal were joined by POSCO President Lee Hee-geun and JSW Steel President Jayant Acharya, along with other senior executives from both groups.
After Chang In-hwa and Sajjan Jindal met in person in Oct. 2024 to sign an MOU, the companies solidified the basis for cooperation through a heads of agreement (HOA) in Jul. 2025, and with the final contract, the joint venture moves into the full-scale construction phase. The joint venture (JV) will be established by POSCO acquiring 1.6095 trillion won of new shares in a JSW Group affiliate, with equity split evenly at 50% each between POSCO and JSW.
The new integrated mill will be blast furnace–based and configured with ironmaking and steelmaking, hot rolling, and cold rolling and coating processes capable of producing high value-added premium steel, establishing an integrated upstream–downstream production system with 6 million tons of crude steel.
The site, secured within Odisha, is adjacent to iron ore mines and allows efficient use of logistics, power, and infrastructure, with completion targeted for 2031 after a 48-month construction period from groundbreaking. The two companies will invest a total of $7.288 billion (about 1.076 trillion won) by 2031. POSCO will shoulder half, or $3.644 billion, part of which will be financed with borrowings.
The companies are reviewing plans to combine POSCO's low-carbon operation technologies and smart factory capabilities with JSW's renewable energy infrastructure to supply part of the power from renewable energy. Through this, they plan to build a low-carbon production system that aligns with the "green steel taxonomy" established by the Indian government, the first of its kind in the world.
POSCO President Lee Hee-geun said, "Through this joint investment, we will combine POSCO's innovative steel technologies with JSW Group's strong local competitiveness to not only create future value but also make tangible contributions to industrial development and economic growth in both countries."
JSW Steel CEO Jayant Acharya said, "This partnership with POSCO will serve as an opportunity to bring together the vision and resolve of both companies," adding, "We expect it to be a significant step toward strengthening India's steel ecosystem and solidifying the nation's industrial value chain."
Since 2004, POSCO has sought four times to enter India's upstream sector, but attempts fell through due to reasons such as searching for a joint venture partner and difficulty securing a site. However, it has since successfully pursued downstream investments, including electrical steel sheet plants and automotive steel sheet plants, and has built a strong partnership with JSW Group, which owns a leading Indian steelmaker, thereby accumulating experience in the Indian market.