South Korea’s POSCO Group and India’s JSW Steel will explore establishing a 6 million mt/year integrated steel plant in India, the companies said Aug. 18.

The companies signed a non-binding heads of agreement to jointly explore setting up the plant, building on a memorandum of understanding signed by both parties in October 2024.

The proposed joint venture will be equally split between the two companies, they said.

“As part of the next steps, POSCO and JSW will undertake a detailed feasibility study to finalize the plant’s location, investment terms, resource availability, and other critical factors.

Given its natural resource base and logistical advantages, Odisha is among the key locations being considered,” POSCO Group said.

POSCO Group has a crude steel production capacity of 42 million mt/year, while JSW Steel’s current overall output is expected to reach 43.4 million mt/year in about three years from a current 35.7 million mt/year.

JSW Steel is also expanding its domestic grain-oriented electrical steel (GOES) production capacity through a joint venture with Japan’s JFE Steel. The joint venture is targeting a GOES output of 350,000 mt/year by 2030, both steelmakers said Aug. 4, a seven-fold increase from current levels.