Japan’s JFE Steel aims to decide this year on a joint venture in India with its partner JSW Steel (JSTL.NS) to produce electrical steel sheets used in power plant transformers, the JFE chairman said on Thursday. Holdings (5411.T), Koji Kakigi.
Japan’s second-largest steelmaker, which falls under JFE Holdings, aims to tap into India’s growing market by offering advanced steel products to increase power generation efficiency, Kakigi told reporters.
“We plan to develop a business in the high-end field, using our technology, to create demand for grain-oriented electrical steel sheet with JSW,” Kakigi said.
JFE said last year it would conduct a feasibility study on forming a joint venture with JSW Steel, in which JFE has a 15% stake, to produce the steel plate as electricity demand in India was skyrocketing.
Japanese steelmakers are expanding in India while reducing their domestic production capacity.
JFE’s biggest rival, Nippon Steel (5401.T), plans to nearly double raw steel production capacity at its Indian plant in Hazira.
As for the Japanese market, JFE, which also has engineering and trading units, plans to expand its offshore wind power generation business.
“In particular, we want to take over the entire operation and maintenance (O&M) service,” he said, adding that he wanted to become a local O&M contractor for wind turbine manufacturers. such as General Electric (GE.N) and Vestas (VWS.CO). ).
JFE could consider acquisitions in areas not covered by the group, such as companies specializing in underwater work, Kakigi said.
Japan plans to install up to 45 gigawatts of offshore wind power by 2040 as part of its efforts to reduce emissions.
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