JSW Steel, JFE Forge $200B Steel Partnership

JFE Steel Corporation of Japan is set to invest Rs 15,750 crore in a significant joint venture with JSW Steel, creating a 50:50 partnership. This strategic alliance will incorporate the integrated steel plant of Bhushan Power & Steel Ltd (BPSL), a subsidiary of JSW Steel, located in Odisha. The deal involves JFE acquiring a 50 percent stake through a cash consideration of Rs 24,483 crore, to be paid in two tranches.

JSW Steel, which acquired BPSL in 2021 via the Insolvency and Bankruptcy Code process, has successfully revitalized the distressed unit from 2.75 MTPA to 4.5 MTPA capacity. This new venture allows JSW Steel to monetize a portion of its stake, fueling its broader growth strategy. The partnership is designed to leverage JFE's advanced technological expertise alongside JSW Steel's robust project execution and operational capabilities, aiming to unlock synergistic value.

Both companies expressed optimism about the venture's potential. Jayant Acharya, Joint Managing Director and CEO of JSW Steel, highlighted the synergy between JSW's Indian market knowledge and JFE's technological prowess, anticipating the production of diverse value-added steels. Masayuki Hirose, President and CEO of JFE Steel Corporation, believes the joint operation will significantly contribute to the growth of both companies and the Indian steel industry.