Japan’s JFE Steel To Pick 50% Stake In JSW Kalinga Steel

The big news in Odisha is Japan’s JFE Steel is ramping up its play in Odisha’s metal sector. JFE, Japan’s second largest alloy maker will buy 50% stake in JSW Kalinga Steel. This will enable the Japanese giant to operate the ailing Bhushan Power & Steel’s integrated facility through this JV, wherein, reportedly, the JV venture also plans to expand its production capacity at Bhushan’s integrated steel mills to 10 million tonnes a year from 4.5 MT now. JFE is investing Rs 15,750 crore in the ailing steel business of Bhushan Power & Steel. Under the arrangement, Bhushan Power & Steel’s integrated steel plant will be transferred to the new JV, enabling both companies to build a dedicated platform for long term growth. Steel industry sources say, the partnership aims to combine JSW’s local market knowledge with JFE’s technological expertise which will enhance operational efficiency and competitiveness. Sources say, this deal is expected to ease not only JSW’s stretched balance sheet while also sustaining it’s expansion drive but also consolidating and internationalising the Indian steel industry. One of the reasons why this JV deal has been smoothly executed is because JFE has been a trusted partner of JSW since 2009. The newly formed JV between JSW and JFE is expected to drive further capacity enhancements and growth beyond current targets, combining technical capabilities, operational discipline and long term planning. JFE holds 50% stake in JSW. Reportedly, this transaction will be executed in two tranches, wherein JFE will acquire 25% in March next year and the remaining around June 2026.