JSW Steel boosts capacity, eyes JFE joint venture

JSW Steel Limited (JSW) announced the merger of Piombino Steel Limited (PSL) into JSW Steel, effective January 1, 2026. PSL owns 82.65% of Bhushan Power and Steel Limited (BPSL). This move streamlines JSW’s investment in BPSL, enhancing strategic focus and potentially reducing overhead costs.

JSW Steel is also forming a 50:50 joint venture with JFE Steel Corporation (JFE) for BPSL’s steel business. JFE will invest 15,750 crore for a 50% equity stake in JSW Kalinga. This partnership aims to accelerate capacity and produce high-value steel products.

As part of the joint venture, JSW will transfer BPSL’s steel business to JSW Sambalpur Steel Limited via a slump sale for a cash consideration of 24,483 crore. JSW Sambalpur, a subsidiary of JSW Kalinga Steel Limited, will be jointly held by JSW Steel and JFE. This transaction, along with the acquisition of 100% equity in Saffron Resources Private Limited, aligns with JSW’s goal to achieve a 50 MTPA steel-making capacity by FY 2031.