JSW & Japan’s JFE Steel sign JV to produce electrical steel

Indian steel manufacturer JSW Steel and Japan’s JFE Steel have entered into a JV to manufacture electrical steel in India.

In 2021, JSW and JFE Steel signed an MoU to conduct a joint feasibility study in the prospect of establishing a Cold Rolled Grain-Oriented (CRGO) manufacturing JV in India. According to JSW Steel, the feasibility study has been completed and both companies have reached an in-principle agreement to form a 50:50 JV with a manufacturing facility in Vijaynagar, Karnataka.

The JV will be the first company to produce CRGO with all its manufacturing processes in the country as it will assist with the fast-growing demand for CRGO products in the country. Electrical Steel CRGO has good unidirectional magnetic properties which makes it ideal for iron cores of power transformers.

The JV will be finalized with the execution of definitive terms in the agreement and upon receipt of necessary regulatory approvals.

At the time of reporting, the stock of JSW Steel was trading around Rs 709.35 per share.