South Korean steel producer Posco announced that it has signed a non-binding heads of agreement (HoA) with India’s JSW Steel to “jointly explore” building a new integrated steel plant in India with an output capacity of six million tons per year. The HoA was signed in Mumbai in the presence of Posco Holdings’ president, Lee Ju-tae, and JSW Steel CEO, Jayant Acharya.

Posco said that the agreement “marks a significant step toward deepening the strategic collaboration between two of the world’s most respected steel companies.” It builds on a memorandum of understanding (MoU), signed in October 2024, which outlined a broad-based collaboration framework between the two companies.

The proposed 50:50 joint venture would combine Posco’s advanced steel production technologies with JSW’s significant scale in the local market, and is aligned with India’s vision of being self-reliant and exporting nation.

The two companies plan to launch a detailed feasibility study to “finalise the plant’s location, investment terms, resource availability, and other critical factors.” Given its natural resource base and logistical advantages, Odisha is among the key locations being considered.

Lee Ju-tae said in a statement: “India is central to the future of global steel demand. Our collaboration with JSW is based on mutual trust and a shared long-term vision. This initiative represents our commitment to supporting India’s industrial growth while creating long-term value for both organizations.”

Jayant Acharya pointed out that the “partnership brings together Posco’s technological leadership in steelmaking and JSW’s proven execution capabilities and strong domestic footprint. The proposed venture aligns with India’s vision of Atmanirbhar Bharat and will help create a globally competitive manufacturing hub to serve both domestic and export markets.”