JSW Steel, JFE Steel JV to set up electrical steel facility with ₹5,500 crore investment

The joint venture between JSW Steel and JFE Steel Corporation will be setting up its facility in Bellary in Karnataka, with a planned investment of 5,500 crore rupees, and is targeting to start production in 2026-27 (Apr-Mar).

The joint venture – called JSW JFE Electrical Steel – will produce grain oriented electrical steel, which finds application in energy-efficient transformers, and will the first company in India to have end-to-end manufacturing of grain oriented electrical steel products.

“The JV Company aspires to cater to the surging domestic demand for Grain Oriented Electrical Steel and contribute significantly to the country’s energy infrastructure,” JSW Steel said in a statement. The ground-breaking ceremony for the plant was held on Monday.

In 2023, JSW Steel and JFE had entered into a joint venture agreement to create a company for the manufacturing and sales of cold-rolled grain oriented electrical sheets. The two companies had first signed a Memorandum of Understanding in 2021 to conduct a feasibility study for the manufacturing and sales of these grain-oriented sheets.

The flagship company of the JSW group, JSW Steel is currently the largest producer of steel in India, and aims to have a capacity of 38.5 million tonnes by the next financial year. The company has spent ₹12,898 crore on capital expenditure so far in 2023-24 (Apr-Mar).

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