Japan-based steelmaker JFE Steel has announced that it and its Indian strategic partner JSW Steel have decided to expand the crude steel production capacity of their 50:50 joint venture, JSW JFE Steel Limited (JJSL), at its Sambalpur Steelworks in Odisha, India.
According to the company, the investment, approved by both partners on October 23, 2026, will increase the steelworks' annual crude steel production capacity by 5 million mt, from the current 4.5 million mt to 9.5 million mt, with operations at the expanded facilities scheduled to begin in 2030.
Expansion to include new blast furnace and rolling facilities
The investment will include the installation of one blast furnace, two coke plants and one pellet plant, as well as two converters, two slab casting machines and one hot rolling line. Additional power generation and utility facilities will also be developed.
The expansion follows the companies' December 2025 announcement regarding the development of their integrated steelmaking joint venture. JFE Steel stated that the project forms part of a longer-term plan to gradually increase JJSL's crude steel production capacity to 15 million mt per year.
JFE Steel targets growing Indian steel demand
JFE Steel expects India's steel demand to increase significantly over the medium to long term, supported by infrastructure investment and the development of its manufacturing sector. Through the expansion, the company aims to strengthen its supply of high value-added steel products in India and increase earnings from its overseas operations.
Under its long-term business strategy, JFE Steel is targeting JPY 500 billion in profit from its steel business segment by fiscal year 2035, including JPY 200 billion from overseas operations.
JJSL currently employs approximately 25,000 people, including around 5,000 direct employees. The joint venture recorded sales of approximately INR 220 billion (JPY 380 billion) in fiscal year 2025.
