JSW Steel share price increased by 3.4 percent intraday on May 7 after they entered into a joint venture with JFE Steel for manufacturing grain-oriented electrical steel sheet.
On Friday, both the companies signed a MOU (which is Memorandum of Understanding) to establish a grain-oriented electrical steel sheet manufacturing and sales joint-venture company in India.
Under this agreement, they will be conducting a feasibility study for the same.
“This feasibility study for a JV with JFE Steel will strengthen our position as India’s leading manufacturer of advanced steel products that lead to reduced CO2 emissions and a more sustainable world,” said Seshagiri Rao, Joint MD at JSW Steel & Group CFO.
In 2012, JSW and JFE entered into an agreement where JFE will be providing technology for the production of non-oriented electrical steel sheets to JSW. This even lead JSW to become India’s leading supplier in this field.