JFE Steel, a major Japanese steelmaker, announced on Friday its plans to acquire the Indian subsidiary of Germany’s Thyssenkrupp in a deal valued at approximately $480 million (¥67 billion). The acquisition, set to be completed by the end of 2024, will be carried out in partnership with JSW Steel, one of India’s leading steel producers.
Thyssenkrupp Electrical Steel India, the target of the acquisition, is the sole manufacturer of grain-oriented electrical steel in India. The company reported sales of ₹12.7 billion ($151 million) in its most recent fiscal year. Grain-oriented electrical steel is a high-performance material used in the production of transformers and is expected to see increased demand due to ongoing infrastructure improvements in India.
JFE Steel has been collaborating with JSW Steel since 2010, focusing on technical cooperation in the production of automotive steel sheets and other products. Last year, the two companies agreed to establish a 50-50 joint venture and began constructing an electrical steel sheet plant in the southern Indian state of Karnataka. The plant is scheduled to be completed in 2027.
The acquisition of Thyssenkrupp Electrical Steel India will allow JFE Steel and JSW Steel to accelerate their entry into the Indian market for grain-oriented electrical steel. According to JFE Steel, this market is expected to grow from 300,000 tonnes in 2022 to nearly 500,000 tonnes by 2030, driven by India’s expanding infrastructure and power sector.
