JFE Steel Corporation (hereinafter “JFE”) and JSW Steel Limited (hereinafter “JSW”), our strategic alliance partner in India, reached an agreement on December 3, 2025 for JFE to invest INR 157.5 billion (approximately JPY 270 billion) for transferring the integrated steel facility of Bhushan Power & Steel Limited (hereinafter “BPSL”) in Odisha, India to a 50:50 joint venture (“JV”) between JFE and JSW. The JV will come into effect following necessary procedures such as obtaining approval from the authorities.

 BPSL owns an iron ore mine and an integrated steelworks in eastern India with crude steel production capacity of 4.5 million tons per year. It primarily produces steel coils and sheets, bars, and wire rods and is a cost-competitive steel company with a wide sales network primarily in eastern and northern India. To meet the growing steel requirement in India, the JV plans to expand crude steel production at the integrated steelworks to 10 million tons by 2030. It already has the land necessary to accommodate this expansion. There is also a potential to expand capacity at the integrated steel works further to 15 million tons in the future to make it one of the largest integrated steel facilities in India. By operating this existing integrated steelworks, the JV expects to be able to quickly capture steel demand in the rapidly growing Indian market and achieve accelerated profitability. Furthermore, by bringing JFE’s technological strengths to and combining it with JSW’s operational excellence, the companies will be able to expand the production of high value-added products and improve productivity. At the same time, by positioning the JV as its third integrated steelworks, expanding JFE’s existing production base comprising the East and West steelworks in Japan, JFE expects to expand earnings from its overseas business.

 To achieve our long-term vision of JPY 500 billion in steel business segment profits by fiscal 2035, JFE aims to realize JPY 200 billion in overseas business profit. We will accomplish sustainable growth by proactively investing in growth sectors and regions, in addition to actualizing benefits of investments we have already made to date.

 

Source: steel.co.jp

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