“The feasibility study has since been completed and both the companies have in principle reached an agreement to establish a 50:50 joint venture company (JV). The JV shall be able to manufacture the entire range of CRGO products at Vijayanagar, Karnataka, India,” JSW Steel said in a statement Monday.
This JV will be the first company to produce CRGO products with its entire chain of manufacturing processes in India. It aims to contribute to the rapidly growing domestic demand for CRGO.
The finalisation of the JV will be subject to the execution of definitive agreements and necessary regulatory approvals.
JSW Steel and JFE Steel continue to enhance their alliance since they signed a comprehensive strategic collaboration agreement in 2009, followed by JFE Steel’s equity investment in JSW Steel.
Jayant Acharya, Joint Managing Director & CEO, JSW Steel said, “The JV company would further strengthen JSW Steel’s position as India’s leading manufacturer of advanced steel products that lead to reduced CO2 emissions and create sustainable steel solutions”.
Electrical steel products — which contain additives, such as silicon and aluminium — offer excellent magnetic properties like high magnetic flux density and low iron loss. CRGO exhibits excellent magnetic properties in a single (rolling) direction, making it ideal for the iron cores of power transformers.
Non-grain-oriented electrical steel exhibits magnetic properties that are largely uniform in all directions and has applications in iron cores of generators, motors, appliances, etc.