JSW Steel and JFE Steel Form Joint Venture Worth Rs 15,750 Crore

JSW Steel Limited has announced a significant joint venture with Japan's JFE Steel Corporation, valued at Rs 15,750 crore (approximately £1.5 billion). This partnership, revealed on 3 December 2025, involves transferring the integrated steel facility of Bhushan Power and Steel Limited (BPSL) located in Odisha into a 50:50 joint venture between the two firms.

The agreement aims to boost crude steel production at the Odisha facility to 10 million tonnes per annum by 2030. JFE Steel highlighted that this initiative is essential for meeting the increasing demand for steel in India, which is one of the fastest-growing markets in the world.

JSW Steel had previously acquired Bhushan Power and Steel in 2021 through the Insolvency and Bankruptcy Code process. The company reported that what was once a struggling unit producing 2.75 million tonnes per annum has now transformed into a profitable venture with an enhanced capacity of 4.5 million tonnes per annum, employing around 25,000 people.

In a statement, JSW Steel noted, "Through this transaction, we will monetise part of our stake in BPSL to accelerate growth. We are bringing in JFE as a long-term strategic partner, which will contribute technological expertise alongside our capabilities in project execution and operational excellence. This collaboration is expected to create substantial value for the joint venture."

The financial proceeds from this deal are expected to strengthen JSW Steel's balance sheet and provide a clear pathway for future growth, benefiting various stakeholders. To facilitate the joint venture, JSW Steel will amalgamate with Piombino Steel Limited. Currently, BPSL is owned by Piombino Steel, in which JSW Steel holds an 82.65% stake, while JSW Shipping & Logistics Private Limited owns the remaining 17.35%.

At the end of the third quarter of 2025, JFE Steel held a 15% stake in JSW Steel. Following the announcement, shares of JSW Steel saw a decline of nearly 2% to Rs 1,140 per share, in contrast to a minor drop of 0.20% in the benchmark NSE Nifty 50 index.

The joint venture will leverage JFE Steel's technological strengths and JSW Steel's operational capabilities to enhance productivity and expand the production of high value-added steel products. By establishing this venture as its third integrated steelworks, JFE Steel aims to augment its overseas business portfolio, complementing its existing operations in Japan.

Masayuki Hirose, President and CEO of JFE Steel Corporation, emphasised the long-standing partnership with JSW, stating, "Our relationship is entering a new phase that will not only foster the growth of both companies but also significantly contribute to the development of the Indian steel industry."

Jayant Acharya, Joint Managing Director and CEO of JSW Steel, expressed enthusiasm for the venture, noting, "This strategic joint venture with JFE Steel aligns with our growth objectives in a financially prudent manner and is set to create additional value for our stakeholders."

The joint venture is anticipated to be operational pending necessary approvals from regulatory authorities, positioning both companies to capture the surging steel demand in India effectively.