In a strategic move to expand its foothold in the electrical steel market, JSW Steel Ltd along with JFE Steel Corporation of Japan, has acquired thyssenkrupp Electrical Steel India Pvt Ltd. The transaction, valued at approximately €440 million, positions JSW Steel to enhance its presence in the rapidly growing electrical steel segment in India.
Located in Nashik, Maharashtra, thyssenkrupp Electrical Steel India employs around 500 people. The acquisition is expected to close in the coming months, with the Nashik site playing a pivotal role in JSW Steel’s plans to bolster its electrical steel production capabilities.
Sajjan Jindal, Chairman, JSW Group, stated, “This acquisition allows JSW Steel to tap into the burgeoning demand for electrical steel in India, driven by the country’s push towards renewable energy and electrification. The Nashik facility adds to our strategic capabilities and aligns with our growth ambitions in the high-performance steel sector.”
The Indian-Japanese consortium’s acquisition comes at a time when thyssenkrupp is realigning its business for market-strategic reasons. Dennis Grimm, Spokesman, Executive Board, thyssenkrupp Steel, noted, “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. 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.”
The proceeds from the sale will bolster thyssenkrupp’s capital base and support its efforts in green transformation, with a renewed focus on growth markets in Europe and North America, where demand for grain-oriented electrical steel remains strong.
JSW Steel’s acquisition further strengthens its portfolio in the electrical steel market, which is critical for energy transmission technologies, a sector expected to see significant growth due to the global shift towards renewable energy.