JSW Steel and JFE to Increase Production Capacity with a ₹5,845 Crore Investment Plan
In an ambitious move to support India's energy transition goals and promote import substitution, JSW Steel and JFE Steel Corporation are jointly investing approximately ₹5,845 crore (around $669 million) to expand their grain-oriented electrical steel (GOES) production capacity in India.
This expansion aims to create India’s largest integrated GOES production base, reinforcing the country's self-reliance in specialty steel and aligning with national initiatives such as Make in India and Atmanirbhar Bharat.
The expanded capacity will see the Vijayanagar plant's capacity increase from the earlier plan of 62,000 tonnes per annum (tpa) to 100,000 tpa, while the Nashik plant's capacity will increase fivefold from 50,000 tpa to 250,000 tpa. The project is expected to reach completion by fiscal year 2028.
Grain-oriented electrical steel is critical for renewable energy technologies and electric mobility (e-Mobility) because it improves energy efficiency and supports decarbonization efforts by reducing carbon emissions. This expansion strategically positions JSW JFE as a key supplier for India’s growing energy transition and e-Mobility sectors.
The total investment in this sector amounts to ₹15,560 crore, according to the company, with ₹5,845 crore allocated for this joint expansion. The expansion will enable JSW Steel to meet the growing demand for high-efficiency electrical steel in sectors like renewable energy, energy transition for decarbonisation, e-Mobility, AI data centers, and more.
Jayant Acharya, Joint Managing Director & CEO of JSW Steel, has stated that the expansion is triggered by the demand for high-grade electrical steel due to the country's green energy transformation, decarbonisation, and digital infrastructure development.
JSW Steel, the flagship of the $23-billion JSW Group, currently has a consolidated capacity of 35.7 million tonnes per annum (mtpa), including 1.5 mtpa in the US. The company targets 43 mtpa of capacity over the next three years.
This investment is a significant step forward for JSW Steel, further solidifying its position as a leading integrated steel manufacturer in India.
[1] JSW Steel and JFE Steel Corporation to Expand Grain-Oriented Electrical Steel Production in India, Link [2] JSW Steel and JFE Steel Corporation to Invest ₹5,845 Crore in India for GOES Production Expansion, Link [3] JSW Steel and JFE Steel Corporation to Create India’s Largest Integrated GOES Production Base, Link [4] JSW Steel and JFE Steel Corporation to Support India’s Energy Transition and e-Mobility Sectors, Link [5] JSW Steel and JFE Steel Corporation to Position Themselves as Key Suppliers for India’s Growing Energy Transition and e-Mobility Sectors, Link
- JSW Steel and JFE Steel Corporation are investing approximately $669 million to live up to their commitment, expanding their grain-oriented electrical steel (GOES) production capacity in India.
- This investment aligns with national initiatives such as Make in India and Atmanirbhar Bharat, aiming to promote India's business growth and self-reliance in specialty steel industries.
- The expansion will result in India’s largest integrated GOES production base, strategically positioning JSW JFE as a key supplier for India’s growing energy transition and e-Mobility sectors.
- The increased capacity at the Vijayanagar plant will rise from 62,000 tonnes per annum to 100,000 tonnes per annum, while the Nashik plant's capacity will increase fivefold.
- The joint investment in this sector totals ₹15,560 crore, with ₹5,845 crore earmarked for the expansion, meeting the growing demand for high-efficiency electrical steel in sectors like renewable energy, energy transition for decarbonisation, e-Mobility, AI data centers, and more.
- According to Jayant Acharya, Joint Managing Director & CEO of JSW Steel, the expansion is sparked by the demand for high-grade electrical steel due to the country's green energy transformation, decarbonisation, and digital infrastructure development.
- With this investment, JSW Steel further cements its position as a leading integrated steel manufacturer in India, targeting a capacity of 43 million tonnes per annum over the next three years.
