JSW Steel, JFE Steel to form JV for CRGO electrical steel manufacturing

JSW Steel said on Monday that it has reached an agreement in principle to set up a 50:50 joint venture (JV) with Japan’s JFE Steel to manufacture Cold Grain Oriented Electric (CRGO) steels in India.

The development takes forward the Memorandum of Understanding signed between the two companies in May 2021. “The feasibility study has since been completed and JSW Steel and JFE Steel have reached an agreement in principle to establish a 50:50 joint venture. The joint venture will be able to manufacture a full range of CRGO products at its facilities,” JSW Steel said in a statement. Proposed in Vijayanagar, Karnataka, India.

The company also said that the joint venture will be the first company to produce CRGO products with the full manufacturing chain in India. Moreover, it will contribute to the rapidly growing Indian demand, with its ‘Made in India’ CRGO products which are based on JFE Steel’s energy efficient production technology developed through extensive research and development.

The investment in the project could be significant, according to the sources, and the completion of the joint venture will be subject to the implementation of definitive agreements and the necessary regulatory approvals.

The strategic alliance of JSW Steel and JFE Steel dates back to 2009. The major Japanese steel company has a 15 percent stake in JSW Steel.

Companies have auto steel technical cooperation. In 2012, JFE entered into an agreement with JSW Steel to provide technology for the production of non-grain-oriented electrical steel products, which has enabled JSW to become India’s leading supplier in this field, JSW said.

The latest agreement for CRGO products. Jayant Acharya, Managing Director and Joint CEO of JSW Steel, said, “The joint venture will cement JSW Steel’s position as a leader in India for manufacturing advanced steel products that result in reduced CO2 emissions, and to create sustainable steel solutions.”

The JFE statement stated that the aim of the joint venture is to contribute to India’s fast-growing economy by providing grain-oriented electrical steel sheets for green power grid enhancement projects.

It also said that the initial substrate (hot rolled steel plate), which is the raw material, will be produced at JSW Steel’s Vijayanagar facility. The joint venture is expected to become fully operational from 2027.

JSW said that CRGO shows excellent magnetic properties in one direction (rolling) which makes it ideal for ferrous cores of power transformers.

acquisition

JSW Steel on Monday said that the total acquisition value of National Steel and Agro Industries (NSAIL) under the Insolvency and Bankruptcy Code (IBC) was Rs.621 crore.

The resolution plan was submitted by the company’s wholly-owned subsidiary, JSW Steel Coated Products Limited (JSWSCPL) and received approval from the National Company Law Tribunal (NCLT) on May 19.

In Monday’s exchange filing, JSW Steel mentioned the terms of the settlement plan. JSWSCPL proposes to pay Rs 612.47 crore to the financial creditor.

Further, there will be an injection of funds of Rs. 8.52 crore in the full and final discharge and settlement of unpaid insolvency resolution process costs, payment towards operational creditors (including workers and employees) and other mandatory payments as per the terms of the resolution plan.

Said registration will also be delisted by NSAIL as per Resolution Scheme approved by NCLT, Mumbai Bench without paying any exit price to the shareholders.