POSCO advances long-awaited India steel project

Apr 21, 2026, 08:37 am

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(From right) Jang In-hwa, chairman of POSCO Group; Lee Hee-keun, president of POSCO; Jayant Acharya, president of JSW Steel; and Sajjan Jindal, chairman of JSW Group, pose for a commemorative photo after the signing ceremony. / POSCO Group

POSCO Group chairman Jang In-hwa has taken a major step toward realizing the company's long-standing goal of building an integrated steel plant in India, a project that has been in the works for more than two decades.

POSCO announced on April 20 that it signed a joint venture agreement (JVA) with JSW Steel to construct an integrated steel plant in India. The two companies will establish a joint corporation with equal 50% ownership and jointly manage operations.

The signing ceremony was attended by key executives from both sides, including Jang In-hwa and Sajjan Jindal, as well as POSCO President Lee Hee-keun and JSW Steel President Jayant Acharya.

The new steel plant will be built in Odisha with an annual crude steel production capacity of 6 million tons. It will feature a fully integrated production system covering ironmaking, steelmaking, and rolling processes. Construction is expected to take about two years, with completion targeted for 2031.

The site was selected for its proximity to iron ore mines and access to logistics and power infrastructure, enhancing operational efficiency.

Both companies plan to combine POSCO’s low-carbon production technology and smart factory capabilities with JSW’s renewable energy infrastructure. Part of the plant’s power supply is expected to come from eco-friendly energy sources, aligning with India’s green steel classification system.

The project is seen as a key example of POSCO’s “complete localization strategy,” which aims to build locally centered supply chains from production to sales. This approach is designed to respond to rising protectionism and diversify revenue streams.

POSCO’s India steel plant initiative dates back to 2004 but had been delayed due to challenges such as land acquisition and partner selection. The company strengthened its market presence through downstream investments in electrical steel and automotive steel, eventually leading to this joint venture with JSW.

India is considered a high-growth market, with steel demand increasing by more than 10% annually, driven by rapid economic growth, urbanization, and manufacturing expansion. Demand for high-value steel products, particularly in the automotive and home appliance sectors, is also expected to rise.

Lee Hee-keun said, “Through this joint investment, we will combine POSCO’s innovative steel technology with JSW Group’s strong local competitiveness to create future value and contribute to industrial development and economic growth in both countries.”

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