- Chennai unit to replicate model developed in western India
- Scrap processed to be used in Vijayanagar, Kadappa plants
JSW Steel plans to establish a 0.5 million tonnes (mnt)/year scrap recycling facility in Chennai to source and process scrap from automobile and white goods manufacturers for use in its steel plants at Vijayanagar (Karnataka) and Kadappa (Andhra Pradesh).
According to Jayant Acharya, Joint Managing Director and CEO, the Chennai unit will replicate the scrap supply chain model already developed in western India. JSW sourced about 2.25 mnt of scrap in the western region last fiscal year and aims to expand this network across southern India.
The new facility adds to JSW’s ongoing metal recycling plant in Raigad, Maharashtra, being developed by its subsidiary NSL Green Steel Recycling. The company had earlier invested INR 175 crore in a joint venture with New Zealand’s National Steel Holdings, later acquiring full ownership in 2023.
As per market feedback from officials, the facility can handle any type of scrap, with sourcing likely guided by viability rather than fixed regions.
Officials note that major southern recyclers, already associated with JSW, largely adopt an inclusive approach rather than a competitive one.
Capacity utilisation is expected to be around 30-40% initially, gradually ramping up. The facility is anticipated to improve scrap collection efficiency, encourage formalisation of the informal sector, and influence regional recycling trends, while competitors may adopt new technologies to maintain competitiveness.
JSW Steel’s growing focus on scrap recycling aligns with its decarbonisation strategy, aiming to increase scrap usage in steelmaking and reduce carbon emissions. The company has also started producing green hydrogen at its Vijayanagar plant as part of its “Green Edge” initiative to produce low-carbon green steel.
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