Sajjan Jindal-led JSW Steel on Monday, May 22, said the company has in principle reached an agreement to establish a 50:50 joint venture (JV) company with JFE Steel to establish a cold rolled grain oriented (CRGO) electrical steel manufacturing unit in India.

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The JV will have the ability to manufacture the entire range of CRGO products at its proposed facilities at Vijayanagar, Karnataka. Also, it will be the first company to produce CRGO products with its entire chain of manufacturing processes in India, JSW Steel said in a press release.

In May 2021, JSW Steel and JFE Steel announced the signing of a memorandum of understanding to conduct a joint feasibility study to establish a cold rolled grain oriented electrical steel manufacturing venture in India.

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Further, the joint venture will contribute to the rapidly-growing Indian demand, with its Indian made CRGO products based on JFE Steel’s energy-efficient production technology developed through extensive R&D.

The finalisation of the JV will be subject to the execution of definitive agreements and necessary regulatory approvals, the company said.

JSW Steel and JFE Steel have a technical collaboration with regard to automotive steel through which JSW Steel has developed a wide range of steel for critical auto end-use applications.

In 2012, JFE Steel entered into an agreement with JSW Steel to provide technology for the production of non-grain-oriented electrical steel products, which has enabled JSW to become India’s leading supplier in this field.

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Jayant Acharya, Joint Managing Director and CEO of JSW Steel, said the JV would further strengthen the company's position as India's leading manufacturer of advanced steel products that lead to reduced CO2 emissions, and creating sustainable steel solutions.

(Edited by : Shoma Bhattacharjee)