Indian steel giant JSW Steel and South Korea's POSCO are set to invest approximately Rs 65,000 crore (USD 7.73 billion) in a new integrated steel plant in Odisha, India. The plant, with an initial capacity of 5 million metric tons annually, will be built in Odisha, an iron ore-rich region in eastern India. This investment seeks to capitalise on India's growing steel demand, driven by rapid economic growth and heightened infrastructure spending.
Media reports have revealed that JSW Steel and POSCO have already committed an initial Rs 20,000 crore to the project, with construction anticipated to commence by next year. The investment is expected to expand over three years, ultimately increasing the plant’s production capacity to 18 million metric tons.
The steel plant will manufacture hot-rolled, cold-rolled, and galvanised steel, supplying materials critical to India's booming construction and manufacturing sectors. India's steel demand surged to a seven-year high from April to August, spurred by private and government infrastructure projects, including a USD 12 billion investment in airport development.
The partnership represents POSCO's renewed interest in India after shelving a USD 12 billion steel plant project years ago due to land acquisition challenges. Today, POSCO operates a cold-rolled, galvanised steel mill in Maharashtra, supplying automotive-grade steel to Indian car manufacturers.
JSW Steel and POSCO’s proposed Odisha plant underscores India’s position as a global hotspot for steel demand, even as growth decelerates in the U.S. and Europe.
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