JSW Steel, JFE Steel plan to set up grain oriented electrical steel sheet JV
JSW Steel has signed a memorandum of understanding (MoU) with JFE Steel to carry out a feasibility study for setting up a grain oriented electrical steel sheet manufacturing and sales joint venture (JV) firm in India.
The partners intend to conclude the study within the current fiscal year of 2021 and take suitable measures for establishing the JV company, which will be subject to requisite approvals.
JSW Steel and JFE Steel had entered into a comprehensive strategic collaboration agreement in 2009, under which the latter took a stake in the former, and had offered technical co-operation pertaining to automotive steel products.
In 2012, the two firms signed an agreement under which JFE Steel has offered technology for the production of non-oriented electrical steel sheets to help JSW Steel become one of the top suppliers in India in this field.
JSW Steel, JFE Steel plan to set up grain oriented electrical steel sheet JV. Photo courtesy of JSW.
Seshagiri Rao – Joint MD of JSW Steel and Group CFO said: “This feasibility study for a JV with JFE Steel for manufacturing Grain Oriented Electrical Steel Sheet in India will strengthen our position as India’s leading manufacturer of advanced steel products that lead to reduced CO2 emissions and a more sustainable world.
“Our partnership with JFE Steel since 2009 has provided us access to cutting-edge technologies and world-class technical expertise to enhance our operational excellence.”
According to JSW Steel, based on the steadily growing demand for electric power, the increasing adoption of renewable energy and the electrification of automobiles, continued growth is projected in India and across the world for grain-oriented electrical steel sheet, which is mainly used in transformers.