JSW Steel & JFE Steel agree to establish Cold Rolled Grain Oriented Electrical Steel Manufacturing JV in India

JSW Steel, India and JFE Steel, Japan had earlier announced signing of a Memorandum of Understanding to conduct a joint feasibility study to establish a Cold Rolled Grain Oriented Electrical Steel ("CRGO") manufacturing joint venture in India.

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 ("JV"). The JV shall be able to manufacture the entire range of CRGO products at its proposed facilities at Vijayanagar, Karnataka, India. This JV will be the first company to produce CRGO products with its entire chain of manufacturing processes in India.

Further, the JV will contribute to the rapidly growing Indian demand, with its "Made in India" CRGO products based on JFE Steel's energy efficient production technology developed through extensive R&D. The finalization of the JV will be subject to execution of definitive agreements and necessary regulatory approvals.

JSW Steel and JFE Steel continue to enhance their alliance since they signed a comprehensive strategic collaboration agreement in 2009, followed by JFE Steel's equity investment in JSW Steel. JSW Steel and JFE Steel have a technical collaboration with regards 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.

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

Shares of JSW Steel Limited was last trading in BSE at Rs. 703.50 as compared to the previous close of Rs. 693.05. The total number of shares traded during the day was 47090 in over 1867 trades.

The stock hit an intraday high of Rs. 707.50 and intraday low of 687.70. The net turnover during the day was Rs. 32790861.00.

Source : Equity Bulls

Keywords

JSWSteel INE019A01038 JFESteel MoU FeasibilityStudy ColdRolledGrainOrientedElectricalSteel Manufacturing JV