JFE Steel Corporation and JSW Steel Limited have announced an agreement to acquire thyssenkrupp Electrical Steel India Private Limited, a leading manufacturer and supplier of electrical steel sheets based in Nashik, Maharashtra, India.
In February 2024, JFE Steel and JSW established a joint venture for the production of GOES. The acquisition through their joint venture named JSW JFE Electrical Steel Private Limited thus opens a significant chapter in both companies that seek to expand their presence in the Indian electrical steel market. The acquisition, finalized through a share purchase agreement dated October 18, 2024, will require the finalization of many regulatory approvals.
thyssenkrupp Electrical Steel India, situated in Maharashtra, India, is one of the first manufacturers of electrical steel sheets in India. They have been manufacturing and selling cold rolled grain-oriented electrical steel sheets for more than10 years.
The two companies have been working together to establish a production system for Grain Oriented Electrical Steel Sheets (GOES) in India, as the demand for ‘GOES’ is expected to increase with the country’s demand for power generation and transmission on the rise.
The two steel giants have been collaborating to establish a robust production system for GOES in India. In February 2024, they formed JSW JFE Electrical Steel Private Limited to focus on GOES manufacturing, with plans to begin fullproduction by 2027. The acquisition of ThyssenKrupp Electrical Steel India will now allow the joint venture to accelerate its market entry and integrate the manufacturing and sales processes ahead of schedule.
JFE Steel says that will continue to strengthen its manufacturing systems, both in Japan and internationally to support eco-friendly manufacturing by expanding the supply of eco-products that contribute to the reduction of CO2 emissions.