JSW and JFE invest $669 million to expand electrical steel production in India
India's JSW Steel and Japan's JFE Steel are investing 58.45 billion rupees (approximately $669 million) to expand the production of cold-rolled electrical steel at two facilities in India. This is reported by Reuters with reference to the JSW exchange message.
This type of steel is widely used in the energy industry, in particular in the manufacture of transformers. It is highly energy efficient and helps reduce carbon emissions, making it a key material in the "green" transformation of the energy sector.
The main part of the investment – 43 billion rupees – will be aimed at increasing the capacity of the plant in Nashik from 50 thousand tons to 250 thousand tons per year. The company is investing another 15.45 billion rupees in a future facility in Vijayanagar, where it plans to increase production from 62,000 tons to 100,000 tons per year.
Financing in the amount of 19.66 billion rupees will be carried out through the equity of both companies in equal shares. JSW did not specify the remaining amount.
It should be noted that the Nashik plant was acquired from German Thyssenkrupp in January of this year for 41.59 billion rupees. All new facilities are planned to be put into operation in stages, starting from fiscal year 2028.