JSW Steel, JFE Steel plan grain-oriented electrical steel manufacturing in India.

JSW Steel and JFE Steel Corporation, have signed a memorandum of understanding to conduct a feasibility study to establish a grain-oriented electrical steel sheet manufacturing and sales joint-venture company in India. The plan is to complete the study within the current fiscal year and take appropriate steps to set up this joint venture company subject to requisite approvals, the company said recently.

Grain-oriented electrical steel is an important material in the production of energy-efficient transformers and high-performance generators.

Grain-oriented electrical steel exhibits excellent magnetic properties in a single (rolling) direction making it ideal for the iron cores of Power Transformers.

JSW Steel and JFE Steel had in 2009 signed a comprehensive strategic collaboration agreement under which JFE Steel took an equity stake in JSW Steel, and has provided technical co-operation with regard to automotive steel products.

Seshagiri Rao, Joint MD, JSW Steel and group chief financial officer said, “This feasibility study for a joint venture with JFE Steel for manufacturing grain-oriented electrical steel sheet in India will strengthen our position as India’s leading manufacturer of advanced steel products that lead to reduced CO2 emissions and a more sustainable world."

In 2012, JSW and JFE entered into an agreement where JFE has provided technology for the production of non-oriented electrical steel sheets, which has enabled JSW to become India’s leading supplier in this field.

In view of the steadily increasing demand for electric power, the growing adoption of renewable energy, and the electrification of automobiles, continued growth is forecast in India and globally for grain-oriented electrical steel sheets primarily used in transformers.

LIVEMINT