JSW plans to enter into electrical steel manufacturing. Sajjan Jindal-led JSW Steel said, it will set
up such a facility in collaboration with
Japan's JFE Steel in Karnataka.
JFE is a leading Japanese steel producer & holds about
15% stake in JSW and both the companies also have agreement to collaborate in
automotive steel manufacturing.
JSW plans to set up the 0.6 mtpa electrical steel facility
at its Vijayanagar plant in Karnataka, the company said in a statement.
However, it did not give the details of the investment.
“Initially, this facility shall produce 0.4-0.5 mtpa of
cold-rolled non-grain oriented (CRNO) grade electrical steel. The company will
also take sight on the production of cold-rolled grain oriented (CRGO) grade in
future,” JSW said.
Electrical steel is a high grade product and due to the
technological constraints involved in its production, the market is largely
dependent on imports.
According to estimates, the present demand of the
value-added product is about 0.5 mtpa and is expected to double by 2016-17.
“The demand for electrical steel is expected to grow at a
CAGR of 15 per cent. Commensurate with this rise in demand, JSW expects to
cater to the growth by scaling up its manufacturing facilities,” the company said.
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