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POSCO and JSW Sign an Agreement to Explore Steel Plant in India

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Key Takeaways

  • JSW and POSCO signed a non-binding pact to explore a 6 MTPA integrated steel plant in India.
  • The companies will conduct a feasibility study on location, structure and resources.
  • Leaders highlighted alignment with India's self-reliance vision and export competitiveness.

POSCO (PKX - Free Report) has signed a non-binding Heads of Agreement (HoA) with JSW Steel to explore setting up a 6 million tons per annum (MTPA) integrated steel plant in India. The leading steelmakers from South Korea and India joined forces to combine POSCO’s advanced steelmaking technology with JSW’s strong presence in the Indian market.

The HoA lays out the framework for a proposed strategic 50:50 joint venture. The companies have agreed to undertake a detailed feasibility study to decide the plant’s location, investment structure and resource requirements. Odisha is considered a preferred site given its natural resource base and logistical advantages, although subject to feasibility and approvals. Aimed at combining POSCO’s advanced technology with JSW’s large-scale operational capabilities, the move will boost India’s self-reliance agenda.

The leadership of POSCO and JSW Steel highlighted India’s significant position in the future steel industry. POSCO intends to support the industrial growth and the partnership’s alignment with India’s self-reliance vision. Together, the companies aim to create long-term value and a globally competitive manufacturing hub to serve both domestic and export markets.

PKX stock has lost 15.7% over the past year compared with the industry’s 19.2% decline.

Zacks Investment Research
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PKX’s Zacks Rank & Other Key Picks

PKX currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Basic Materials space are Nutrien Ltd. (NTR - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and CF IndustriesHoldings, Inc. (CF - Free Report) . While NTR currently sports a Zacks Rank #1 (Strong Buy), CRS and CF carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NTR’s current-year earnings is pegged at $4.30 per share, implying a 23.92% year-over-year surge. Its earnings beat the Zacks Consensus Estimate in one of the trailing four quarters while missing the rest. Its shares have gained 24.7% in the past year.

The Zacks Consensus Estimate for CRS’ fiscal 2025 earnings is pegged at $9.36 per share, indicating a rise of 25.13% from year-ago levels. The company’s earnings beat the consensus estimate in each of the trailing four quarters. Its shares have soared 67.4% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $8.10 per share, indicating a 20.18% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 25.29%. CF’s shares have gained 10% in the past year.

 


 

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