India’s JSW Steel Limited has reached an “in principle” agreement with Japan-based JFE Steel to establish a 50:50 joint venture for domestic production of cold rolled grain-oriented (CRGO) electrical grade steel, a company statement said on Tuesday, May 23.
This is follow-up to a memorandum of understanding (MoU) signed by the two companies last year.
“The feasibility study has since been completed and both JSW Steel and JFE Steel have in principle reached an agreement to establish a 50:50 joint venture company. The joint venture shall be able to manufacture the entire range of CRGO products at its proposed facilities at Vijayanagar, Karnataka, India,” the statement said.
It said that the investment in the project could be significant and the finalization of the JV will be subject to execution of definitive agreements and necessary regulatory approvals.
JSW Steel Limited and JFE Steel have a relationship going back to 2009, included technical collaboration for production of automotive steel, with the latter holding 15 percent equity stake in the Indian steel company.