Mumbai: JSW Steel Ltd’s board has approved a joint venture with South Korea’s Posco Group to set up a 6 million tonnes per annum (mtpa) integrated steel plant in Odisha.
The partnership will be executed through Saffron Resources Pvt. Ltd., a wholly owned subsidiary of JSW Steel, which will be converted into a 50:50 joint venture between the two companies, JSW said in a regulatory filing on Friday.
The proposed facility will be a greenfield project, marking a significant expansion in ’s domestic manufacturing footprint.
As part of the agreement, Posco will subscribe to shares of Saffron Resources for an estimated ₹508.8 crore, subject to closing adjustments. The transaction is expected to be completed by 31 December 2026, unless extended by mutual consent.
Saffron Resources currently holds approximately 887 acres of land in Odisha, including both freehold and leasehold parcels, which may be utilised for the development of the plant.
The finalisation of the joint venture comes nearly 18 months after JSW and Posco first signed an agreement in October 2024 to collaborate on steelmaking, (EV) batteries and renewable energy projects.
“An association with POSCO Co., Ltd will enable the Company to form a strategic partnership for access to technology and manufacturing of high-grade steel products for automotive and other applications,” the steelmaker said in an exchange filing on Friday.
This will mark JSW Steel’s third joint venture with a foreign partner, adding to its existing two partnerships with Japan’s JFE Steel Corp.
JSW Steel, which has a current crude steel capacity of 35.7 MTPA globally, is targeting 50 MTPA capacity in India by FY31. Posco, with around 45 MTPA capacity, is expected to bring advanced technology and operational expertise to the venture.
The partnership also signals a renewed push by Posco in India after earlier setbacks.
In 2005, Posco unveiled plans to invest $12 billion in a 12 mtpa steel plant in Odisha, even setting up an office at The Ashok Hotel, close to the Prime Minister’s residence, signalling its intent to stay closely engaged with policymakers. In 2010, the company announced another $5.3 billion investment for a 6 mtpa plant in Karnataka.
Despite its high-profile push, the projects failed to take off. Posco withdrew from Karnataka in 2013 and exited the Odisha project in 2017. The exits were largely driven by difficulties in securing iron ore linkages and acquiring land amid regulatory hurdles. The Odisha project also faced sustained resistance from local communities in Jagatsinghpur district, where residents opposed the diversion of forest land they had relied on for generations, according to media reports.