By Diplomacy Journal Kayla Lee

POSCO Group, South Korea’s global leader in steel production, and India’s leading steelmaker JSW Steel have signed a non-binding Heads of Agreement (HoA) on August 18 to jointly explore setting up a 6 million tonnes per annum (MTPA) integrated steel plant in India.

The agreement marks a significant step toward deepening strategic collaboration between two of the world’s most respected steel companies.

This HoA builds on the Memorandum of Understanding (MoU) signed by both parties in October 2024 and outlines the broad framework for the proposed 50:50 joint venture. The HoA was signed in Mumbai in the presence of Lee Ju-tae, Representative Director and President, POSCO Holdings, and Jayant Acharya, Joint Managing Director & CEO, JSW Steel.

As part of the next steps, POSCO and JSW will undertake a detailed feasibility study to finalize 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, Representative Director and President, POSCO Holdings, said, “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, Joint Managing Director & CEO, JSW Steel, said, “This 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.”