Japan-based JFE Steel Corporation (“JFE”) and India-based JSW Steel Limited (“JSW”) reached an agreement on 3 December 2025 to convert Bhushan Power & Steel Limited’s (“BPSL”) integrated steel plant in Odisha, India, into a 50:50 joint venture (“JV”). Under the agreement, JFE will invest INR 157.5 billion (approximately USD 1.76 billion / JPY 270 billion) in the JV. The joint venture will officially commence once the necessary regulatory approvals and procedures are completed.
BPSL operates an integrated steel plant in eastern India with an annual crude steel production capacity of 4.5 million tons, as well as an iron ore mine. The company primarily produces steel coils and sheets, bars, and billets, and stands out as a cost-competitive producer with a broad sales network, particularly in eastern and northern India.
The joint venture aims to increase the integrated steel plant’s production capacity to 10 million tons per year by 2030. The plant already has the land to support this expansion and has the potential to reach 15 million tons in the future, making it one of India’s largest integrated steel plants. This growth aims to meet the rapidly rising steel demand in India and enhance the JV’s profitability.
JFE and JSW plan to expand the production of high-value-added products, improve efficiency, and combine technological strengths with operational excellence through the joint venture. Positioning the JV as their third integrated steel plant will also expand JFE’s production base beyond its East and West Japan steel plants, increasing earnings from overseas operations. JFE aims to achieve JPY 500 billion in profits in the steel sector by fiscal year 2035, with JPY 200 billion expected from overseas operations.
Masayuki Hirose, president and CEO of JFE Steel Corporation, stated: “Since signing the comprehensive strategic partnership agreement with JSW in 2009, our relationship has strengthened through various collaborations and joint ventures. By leveraging our technological strengths and operating an integrated steel plant with JSW in India, we are confident that we will not only contribute to the growth of both companies but also make a significant contribution to the development of India’s steel industry.”
Jayant Acharya, co-managing director and CEO of JSW Steel Limited, emphasized: “We are pleased to announce this strategic joint venture with JFE Steel for our steel operations at BPSL. The joint venture will combine our expertise in India with JFE’s technological strength, allowing us to realize our growth potential and produce a range of high-value-added steels. India is the world’s fastest-growing major economy and steel market; this deal will accelerate JSW’s financially prudent growth and create greater value for our stakeholders.”
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