JFE Steel Corporation (hereinafter referred to as 'our company') and JSW Steel Limited (hereinafter referred to as 'JSW'), our company's strategic alliance partner in India, have decided to significantly expand the manufacturing capacity of JSW JFE Electrical Steel Private Limited (hereinafter referred to as 'J2ES Vijayanagar') and JSW JFE Electrical Steel Nashik Private Limited (formerly thyssenkrupp Electrical Steel India Private Limited, hereinafter referred to as 'J2ES Nashik'). Both are grain-oriented electrical steel sheet (GOES) manufacturing and sales companies which are established with a 50:50 equity ratio. Our company and JSW will invest approximately 120 billion yen: 99 billion yen for the expansion and additional 21 billion yen for working capital and other investments. Along with the investment to establish J2ES Vijayanagar in February 2024 and the acquisition of J2ES Nashik in January 2025, the total investment will be approximately 290 billion yen: 263 billion yen and additional 27 billion yen for working capital and other investments. Going forward, we will further enhance our competitiveness within India and steadily capture the rapidly growing demand for electrical steel.

 In this expansion plan, we will double the manufacturing capacity of the J2ES Vijayanagar site from the initial plan, to 100,000 tonnes per year and increase the current manufacturing capacity of the J2ES Nashik site fivefold, from 50,000 tonnes per year to 250,000 tonnes per year. The manufacturing capacity of the J2ES Vijayanagar site and the J2ES Nashik site will be significantly increased to a total of 350,000 tonnes per year. In India, which has the largest population in the world, the demand for GOES is rapidly increasing due to rising power demand linked to economic growth, expansion of renewable energy use, improvements in transformer efficiency, and an increase in the number of data centers. The J2ES Vijayanagar site is scheduled to start full production within the year 2027, as planned. The expansion of the J2ES Nashik site will be carried out gradually starting in the year 2028, with completion expected in the year 2030. Through this manufacturing capacity expansion, we aim to secure a significant position as the No.1 GOES supplier in India.

 The JFE Group aims to provide strong technological capabilities and a diverse eco-product lineup to help conserve the global environment, as outlined in its vision for 2035, 'JFE Vision 2035.' Additionally, in our 8th Medium-term Business Plan for the steel business (2025-2027), we establish promoting and further deepening “insider” businesses with top-tier partners in overseas growth regions as a key pillar, setting a growth investment budget of 400 billion yen. This expansion investment is positioned as the first step in that direction.

 With this plan for expansion of manufacturing capacity at both locations, in collaboration with JSW, we will enhance our presence in the growing Indian market as the only fully integrated manufacturer of GOES in India. Utilizing our world-class technological prowess, we will also contribute to the realization of a sustainable society by meeting the demand for highly-efficient products aimed at expanding use of renewable energy and reducing energy loss.

 

Source: steel.co.jp

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