JSW Steel has formed a new joint venture with Japan’s JFE Steel Corporation to produce grain-oriented electrical steel in Karnataka with an investment of Rs 5,500 crore.
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The new company, JSW Electrical Steel, will be renamed JSW JFE Electrical Steel after the two companies agreed to hold equal shares in the joint venture.
The company plans to start production at the plant in the financial year 2026-27 and plans to further expand its capacity to meet the growing demand for oriented electrical steel in the Indian market, the company said in a statement on Tuesday.
The joint venture will be the first company to undertake end-to-end manufacturing of grain-oriented electrical steel products in India.
The joint venture aims to meet growing domestic demand and make a significant contribution to the national energy infrastructure.
Grain-oriented electrical steel plays an important role in the production of energy-saving transformers. Whether in laminated, wound or punched sheet form, it is an important core material for distribution transformers, power transformers and small transformers.
The investment plan comes after JSW Steel acquired 2,950.31 acres of land at Utkal in Odisha last month for setting up a 13 million tonne per annum integrated steel plant.
In 2022, the steelmaker announced plans to invest Rs 65,000 crore in a phased manner to set up a steel plant in Odisha. The company already has significant iron ore reserves in the state.
In another development, JSW Group promoters plan to invest Rs 4,000 crore in its electric vehicle and component manufacturing projects at Cuttack and Paradip in Odisha. The two projects are expected to create more than 11,000 new jobs in the state.
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Accordingly, the Sajjan Jindal-led group proposed to invest around Rs 200 crore in the automotive, mining, steel, power and cement sectors.