JSW Steel signs MoU to conduct feasibility study with JFE Steel Corporation

JSW Steel on Friday said it has signed a memorandum of understanding (MoU) to conduct a feasibility study with JFE Steel Corporation to establish a grain oriented electrical steel sheet manufacturing and sales joint-venture company in India.

The plan is to complete the study within the current 2021 fiscal year and take appropriate steps to set up this JV company subject to requisite approvals, JSW Steel said in a regulatory filing.

JSW Steel said the company and JFE Steel continue to deepen their alliance since they signed a comprehensive strategic collaboration agreement in 2009, under which JFE Steel took an equity stake in JSW Steel, and has provided technical co-operation with regard to automotive steel products.

Seshagiri Rao, Joint MD, JSW Steel and Group CFO said: "This feasibility study for a joint venture with JFE Steel for manufacturing grain oriented electrical steel sheet in India will strengthen our position as India''s leading manufacturer of advanced steel products that lead to reduced CO2 emissions and a more sustainable world".

JSW Steel said in view of the steadily increasing demand for electric power, the growing adoption of renewable energy and the electrification of automobiles, continued growth is forecasted in India and globally for grain-oriented electrical steel sheets primarily used in transformers.