JSW Steel and Japan's JFE to add 5 MT steel capacity at Odisha JV
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JSW JFE Steel Ltd (JJSL) is a 50:50 joint venture (JV) of JSW Steel and Japan-based JFE Steel Corporation(JFE).
JJSL has a 4.5 MTPA integrated steel plant at Sambalpur, Odisha and two downstream facilities at Chandigarh and Kolkata. The integrated steel plant at Sambalpur is operating at near full capacity, JSW Steel said in an exchange filing on Friday.
Considering the increasing domestic steel demand and JJSL's long-term growth strategy, the board of JSW Steel approved a 5 MTPA expansion project and upgradation of existing plant facilities at Sambalpur by JJSL.
"The board and our joint venture partner, JFE Steel, have approved a 5 MTPA expansion at JSW JFE Steel Ltd. This will take the total capacity of the plant to 9.5 MTPA and is planned to be commissioned by FY31," JSW Steel said.
The equity requirement for the project is estimated at Rs 7,500 crore, to be contributed equally by the company and JFE, i.e. Rs 3,750 crore each, JSW Steel said.
The project implementation is expected to commence from April 2027, subject to receipt of requisite statutory and environmental approvals, and is targeted to be completed over approximately 3.5 years.
The project will strengthen JJSL's market position, improve economies of scale, expand value-added product offerings, and enhance export opportunities.
The board also approved additional investments across steel making, downstream, and mining business operations, besides the incorporation of a wholly-owned subsidiary of the company in the UAE.
In a separate statement, JSW Steel said that, in line with the company's strategy to enhance downstream capabilities to address market requirements, the board has approved an expansion at Vasind comprising a 1.8 MTPA Cold Rolling Mill complex, along with a 1.2 MTPA metal coating facility, including Zero Sprangle (ZS) and Zinc-Aluminum-Magnesium (ZAM) facility. The project is targeted for commissioning by Q2 FY30.
Phase-II of the expansion at the JSW Utkal facility in Odisha, with a capital outlay of Rs 16,150 crore and the commissioning target in Q1 FY31, will add 5 MTPA of steel making capacity, taking the total capacity under construction at the site to 10 MTPA.
The board also approved an 8-MTPA pellet plant at JVML-Vijayanagar, which will reduce dependence on iron ore lumps. Also, the installation of an additional converter and caster is planned at the JVML Phase-II expansion announced earlier.
The board gave its nod to an additional strand of caster and a Plate Processing Facility to be added at the ongoing Dolvi PhaseIll expansion, to enhance the utilisation of the Rolling Mill.
To bolster raw material security, the board has approved the expansion of the MdR coking coal mine in Mozambique to a capacity of 9 MTPA of prime hard coking coal. The production is targeted to commence from the calendar year 2028 in a phased manner.
The company acquired the MdR coking coal deposit in Mozambique in March 2026.
Further, the board has approved capital expenditure for the development of captive iron ore mines, and coking coal mines and washeries in India. PTI ABI HVA
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JSW Steel and JFE Steel have entered into a mutual agreement to enhance their joint venture steel initiative in Odisha. With a notable investment of Rs 7,500 crore from both parties, this ambitious project targets an increased production capacity of 9.5 million tonnes by FY31. In addition, further investments will support improvements in other steel and mining activities, reinforcing their competitive edge and significantly upgrading their product range.
New Delhi, Homegrown JSW Steel and its Japanese partner have agreed to expand the capacity of their joint venture steel project in Odisha to 9.5 million tonnes at an estimated investment of Rs 7,500 crore.JSW JFE Steel Ltd (JJSL) is a 50:50 joint venture (JV) of JSW Steel and Japan-based JFE Steel Corporation(JFE).
JJSL has a 4.5 MTPA integrated steel plant at Sambalpur, Odisha and two downstream facilities at Chandigarh and Kolkata. The integrated steel plant at Sambalpur is operating at near full capacity, JSW Steel said in an exchange filing on Friday.
Considering the increasing domestic steel demand and JJSL's long-term growth strategy, the board of JSW Steel approved a 5 MTPA expansion project and upgradation of existing plant facilities at Sambalpur by JJSL.
"The board and our joint venture partner, JFE Steel, have approved a 5 MTPA expansion at JSW JFE Steel Ltd. This will take the total capacity of the plant to 9.5 MTPA and is planned to be commissioned by FY31," JSW Steel said.
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The equity requirement for the project is estimated at Rs 7,500 crore, to be contributed equally by the company and JFE, i.e. Rs 3,750 crore each, JSW Steel said.
The project implementation is expected to commence from April 2027, subject to receipt of requisite statutory and environmental approvals, and is targeted to be completed over approximately 3.5 years.
The project will strengthen JJSL's market position, improve economies of scale, expand value-added product offerings, and enhance export opportunities.
The board also approved additional investments across steel making, downstream, and mining business operations, besides the incorporation of a wholly-owned subsidiary of the company in the UAE.
In a separate statement, JSW Steel said that, in line with the company's strategy to enhance downstream capabilities to address market requirements, the board has approved an expansion at Vasind comprising a 1.8 MTPA Cold Rolling Mill complex, along with a 1.2 MTPA metal coating facility, including Zero Sprangle (ZS) and Zinc-Aluminum-Magnesium (ZAM) facility. The project is targeted for commissioning by Q2 FY30.
Phase-II of the expansion at the JSW Utkal facility in Odisha, with a capital outlay of Rs 16,150 crore and the commissioning target in Q1 FY31, will add 5 MTPA of steel making capacity, taking the total capacity under construction at the site to 10 MTPA.
The board also approved an 8-MTPA pellet plant at JVML-Vijayanagar, which will reduce dependence on iron ore lumps. Also, the installation of an additional converter and caster is planned at the JVML Phase-II expansion announced earlier.
The board gave its nod to an additional strand of caster and a Plate Processing Facility to be added at the ongoing Dolvi PhaseIll expansion, to enhance the utilisation of the Rolling Mill.
To bolster raw material security, the board has approved the expansion of the MdR coking coal mine in Mozambique to a capacity of 9 MTPA of prime hard coking coal. The production is targeted to commence from the calendar year 2028 in a phased manner.
The company acquired the MdR coking coal deposit in Mozambique in March 2026.
Further, the board has approved capital expenditure for the development of captive iron ore mines, and coking coal mines and washeries in India. PTI ABI HVA
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Source: Economic Times — Ind'l Goods/Svs ↗
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
