- 30 Oct 2024
- ICICI Securities
SIGNED MOU WITH ONE OF THE GLOBAL STEEL MANUFACTURERS TO SET UP A 5 MTPA INTEGRATED STEEL PLANT IN INDIA
News: JSW has informed the exchanges that it has signed a Memorandum of Understanding (MOU) with South Korea’s PSOCO group for collaboration in steel space by setting up an integrated steel plant with an initial capacity of 5 million tonnes (MTPA). Moreover, the partnership will focus on battery materials related to Electric Vehicles and renewable energy space to meet the steel plant’s captive needs.
Views: This is sentimentally positive, as JSW Steel’s strategic partnership with POSCO, which is one of the world largest steel manufacturers, will enhance the company the market position in response to the growing steel demand in the country. This collaboration is expected to boost its domestic steel production capacity, which is currently at ~34.2 million tonnes. We will await more development in this space. Our positive outlook on JSW Steel remains intact due to its strategic capacity expansion, favourable steel demand domestically and anticipated profitability improvements.
Impact: Positive