JSW Steel, Along With JFE Steel Of Japan, Has Inscribed An Accord To Produce Electrical Steel In India

JSW Steel (India) And JFE Steel (Japan) Sign A Deal For The Production Of Electrical Steel In India

JSW Steel and JFE Steel have come together and inked a deal for establishing a JV company at Vijaynagar in Karnataka, which produces a complete range of CRGO (cold rolled grain-oriented electrical steel) products.

Both companies agreed on a joint venture in CRGO manufacturing in India by signing a memorandum of understanding (MoU) in 2021.

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Since then, the feasibility study has been concluded, and both firms came to an agreement for setting up a 50-50 joint venture company (JV) which will produce a complete range of CRGO products. This will be India's first venture in manufacturing CRGO products, with the full manufacturing processes taking place in India.

The venture company strives to cater to the rapid demand for CRGO in the domestic market. The final verdict for JV is contingent on final arrangements and required regulatory approvals.

Both companies are building on their strategic alliance, which goes back to 2009 when they signed their initial agreement, followed by the equity investment by JFE Steel in JSW Steel.

According to JSW Steel, the establishment of JV will solidify the company's role as a leader in producing cutting-edge steel products that lower emissions of CO2, creating more promising and sustainable steel solutions.

About CRGO

Electrical steel products with small amounts of silicon and aluminium offer greater magnetic properties, such as low loss of iron and high magnetic flux density. CRGO provides premium magnetic properties in a single (rolling) direction, making it best-suited as power transformers' iron cores.

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On the other hand, non-grain-oriented electrical steel and its excellent magnetic properties, which uniformly spread in all directions, are employed in iron cores of generators, appliances as well as motors, among others.

According to the article by Procurement Resource, JSW Steel and JFE Steel have collaborated to begin the manufacturing of CRGO in India. The venture company, JV, aims to meet the growing demand for CRGO in the domestic market while reducing CO2 emissions and promoting sustainable operations.