21 Oct 2024
JSW Steel has a 50:50 joint venture with Japan’s JFE Steel Corp that will acquire a 100% stake in Thyssenkrupp Electrical Steel India (TKES).
The JSW Steel – JFE joint venture is set to fully acquire Thyssenkrupp Electric Steel, including licensing or transferring its associated technology to enhance its portfolio of value-added steel products. TKES’s Nashik facility makes grain-oriented electrical sheets (GOES), which are used to manufacture energy-efficient transformers and bigger, high-performance generators.
Jsquare Electrical Steel Nashik, the JSW-JFE joint venture, will execute the transaction. It expects to achieve immediate market access with this acquisition. The acquisition will enable the JSW-JFE joint venture to make GOES in India for domestic and global customers.
Presently, India imports the majority of the GOES from Japan, Russia, and China. ArcelorMittal, POSCO, and Baosteel are the biggest global manufacturers of GOES.
The market for GOES is valued at around $13 billion worldwide, projected to reach $20 billion by 2032. The acquisition is expected to be completed within eight months, subject to approval from the Competition Commission of India.