JSW Steel And South Korea's POSCO To Set Up Steel Plant In Odisha With $7.7 Billion Investment

India's JSW Steel and South Korea's POSCO are set to jointly invest 650 billion rupees (approximately $7.73 billion) in a large-scale steel plant in Odisha, India, over the coming years.

Odisha is a state rich in iron ore resources, ensuring a steady supply of raw materials. The plant, aimed at capitalising on surging steel demand in India’s fast-growing economy, will mark a major collaboration between the two steel giants.

Last week, both companies signed an agreement to establish the integrated plant, which will initially produce five million metric tons of steel annually.

As per Economic Times report, an initial investment of 200 billion rupees will fund the plant’s construction, with completion anticipated by next year. The total investment is expected to grow to $7.73 billion within three years as production ramps up, eventually reaching an annual capacity of 18 million metric tons. Both companies declined to comment on the specifics when contacted.

Steel demand in India hit a seven-year high between April and August, and growth is expected to continue as the country pursues significant infrastructure projects. Among them is a $12 billion government-backed initiative to build new airports and expand existing ones, further fueling demand for construction materials.

The JSW-POSCO plant will produce a range of steel products, including hot-rolled, cold-rolled, and galvanized steel. This new facility marks a return to India for POSCO, which had previously abandoned plans for a $12 billion steel plant in Odisha due to land acquisition challenges.

POSCO currently operates a galvanized steel mill in Maharashtra, serving automotive manufacturers with high-grade steel.