SEOUL, South Korean steelmaker POSCO Group announced Monday that it has signed an initial agreement with India’s JSW Group to jointly develop a large-scale steel plant in India.
According to POSCO, the two companies entered into a non-binding heads of agreement (HOA) to build an integrated steel mill with an annual production capacity of 6 million tons in the world’s most populous nation.
This file photo, taken in Mumbai on July 9, 2025, and provided by POSCO Group, shows JSW Group President Jayant Acharya (2nd from L), POSCO Holdings President Lee Ju-tae (3rd from L) and other officials posing after signing a non-binding heads of agreement (HOA) for a 50:50 steel plant project in India.
“India is one of the key growth engines in the global steel market. Through this partnership, the leading steelmakers of both countries will create new value and contribute to industrial development in Korea and India,” said Lee Ju-tae, President of POSCO Holdings.
The proposed site under consideration is Odisha, in eastern India, due to its rich reserves of coal and iron ore. POSCO said the exact location will be finalized following a feasibility study.
The joint venture is designed to meet India’s surging demand for steel, which has been growing at an annual rate of 9–10 percent over the past three years. Once project details are finalized and regulatory approvals are secured, POSCO and JSW plan to sign a definitive agreement, with both parties contributing on a 50:50 investment basis.
Details such as the total investment cost and construction timeline were not disclosed.
This HOA builds on a memorandum of understanding (MOU) signed in October, where the two companies agreed to explore cooperation in steelmaking and rechargeable battery materials.
Separately, POSCO earlier this year announced plans to invest in Hyundai Steel Co.’s US$5.8 billion steel mill project in the United States, part of its strategy to navigate the impact of U.S. tariffs on steel imports.
