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JSW Steel India and JFE Japan to invest $669 Million to boost electrical steel production

JSW Steel announced on Monday that a joint venture between India's JSW Steel, and Japan's JFE Steel, will invest 669 million dollars to increase production capacity for cold-rolled grain-oriented electric steel at two Indian plants in order to meet the growing domestic demand.

JSW Steel announced that JSW and JFE would fund the expansion in equal amounts through equity. The additional capacity will be added in phases starting with the fiscal year 2028. The source of the remaining funds was not specified by the company.

Cold-rolled grain-oriented steel is used primarily in energy applications and is considered more energy efficient. It also reduces carbon emissions.

JSW JFE Electrical Steel plans to increase production at its Nashik facility to 250,000 tonnes per annum, up from 50,000 TPA. The two companies will invest 43 billion rupees to achieve this.

JSW Steel announced in a filing on the exchange that it will invest the remaining 15,45 billion rupees in order to increase capacity at a new facility in Vijayanagar from 62,000 TPA to 100,000 TPA.

JSW JFE bought Germany's Thyssenkrupp's Nashik facility in January for 41,59 billion rupees.

(source: Reuters)