Jsquare Electrical Steel Nashik, a wholly owned subsidiary of JSW JFE Electrical Steel (J2ES), a 50:50 joint venture between JSW Steel and JFE Steel Corporation, has entered into a share purchase agreement to acquire 100% of equity interest in thyssenkrupp Electrical Steel India (tkES India).
JSW Steel has entered into other agreements including for licensing/transfer of associated technology package from thyssenkrupp group. The total purchase consideration for the Transaction is ₹4,051.40 crore, subject to closing adjustments.
In February 2024, JFE Steel and JSW established JSW JFE Electrical Steel, a joint venture for the production of GOES, with the aim of establishing an integrated manufacturing system for GOES in India.
J2ES is expected to commence full production in 2027. Now, through this acquisition, JSW and JFE shall achieve instant market access and can promptly establish an integrated system from manufacturing to sales of GOES in India.
Jayant Acharya, Joint Managing Director & CEO, JSW Steel said, “The market for GOES is growing rapidly. This acquisition will enable the consortium of JSW and JFE to manufacture this product in India and supply it to customers in India and globally, thereby also enabling import substitution and hence taking another step towards a self-reliant India.”
“The supply of raw materials from thyssenkrupp’s German steelworks to India is cost-intensive and weakens our competitiveness in India in the long term. Setting up our own local raw material production is not economically feasible for us. Compared to our local competitors, we will not be able to achieve the same economies of scale by supplying from Germany. This is why the sale is the right step for us at the right time,” explains Dennis Grimm, Spokesman of the Executive Board of thyssenkrupp Steel.
