JSW Steel and JFE Steel Launch JV to Expand Bhushan Power and Steel Capacity to 10 MT

3 Dec 2025 , 04:28 PM

JSW Steel announced that it will form a new joint venture with Japan’s JFE Steel to take over the integrated steel facility of Bhushan Power and Steel in Odisha. The facility will be transferred to a new 50:50 joint venture that both companies will jointly control. JFE Steel said it plans to invest about 270 billion Japanese Yen, which works out to nearly ₹15,750 crore, for its stake in the joint venture.

The new entity aims to scale up crude steel production at the Bhushan Power and Steel plant to 10 million tonnes by 2030. The company already holds the land required for this expansion, making the project easier to execute.

Bhushan Power and Steel currently operates an iron ore mine and an integrated steel plant in eastern India with a crude steel capacity of 4.5 million tonnes a year. Its product range includes steel coils, sheets, bars and wire rods. The company serves a large customer base across eastern and northern India and is known for its cost-efficient operations.

JFE Steel said the collaboration allows the two companies to combine JFE’s strong technological capabilities with JSW’s operational expertise. The partnership is expected to lift productivity levels and support the production of more high value-added steel grades.

In a separate exchange filing, JSW Steel said it will first transfer the steel business of Bhushan Power and Steel to JSW Sambalpur through a slump sale valued at ₹24,883 crore. JSW Sambalpur is a wholly owned unit of JSW Kalinga Steel.

JSW Kalinga Steel is currently held by Piombino Steel. Piombino Steel owns 82.65 percent of JSW Kalinga, while the remaining 17.35 percent is held by JSW Shipping.

JFE Steel will acquire a 50 percent stake in JSW Kalinga for ₹15,750 crore, which will be invested in two equal instalments. Once the transaction is completed, JSW Steel and JFE Steel will jointly manage the Bhushan Power and Steel business.

Both partners will have the right to appoint two directors each to the board of JSW Kalinga. They will also be able to nominate three directors each to the board of JSW Sambalpur. As part of the deal structure, JSW Kalinga will issue equity shares worth ₹7,875 crore to JFE Steel.

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