JSW Steel Ltd. announced a joint venture with Japan’s JFE Steel worth Rs 15,750 crore on Wednesday, as per an exchange
filing. As part of the deal, Bhushan Power and Steel’s integrated steel facility in Odisha will be transferred to a
50:50 joint venture between the two companies.
JFE Steel said the JV with JSW aims to expand crude steel production at the integrated steelworks to 10 million tonnes
JSW had acquired Bhushan Power & Steel in 2021 through an IBC process. “What was a 2.75 mtpa sick unit now stands proud
as a profitable company with an enhanced capacity of 4.5 mtpa, employing 25,000 people,” the company said.
JSW Steel added that through this transaction, it will monetise part of its holding in BPSL to accelerate growth. “While
doing so, the Company will bring in JFE, a trusted, long-term strategic partner that will bring in technological
expertise, and along with JSW Steel’s capability of project execution and operational excellence, will create further
value for the joint venture. JSW shall continue to remain invested in, and will participate in the future value creation
in the joint venture,” it said.
The company said the cash proceeds from the deal will further strengthen its balance sheet and provide a clear runway
for growth, creating significant value for stakeholders.
To execute the joint venture, JSW Steel is amalgamating with Piombino Steel Ltd. BPSL is currently owned by Piombino
Steel, which is 82.65% held by JSW Steel and 17.35% by JSW Shipping & Logistics Private Limited.
JFE Steel held a 15% stake in JSW Steel at the end of the September quarter.
Shares of JSW Steel were trading nearly 2% lower at Rs 1,140 apiece, as compared to a 0.20% decline in the benchmark NSE