Japanese steel producer JFE Holdings is trying to regain market confidence after its shares decreased by 20% compared to the beginning of the year. The company said it expects group net profit to rise 4% to 205 billion yen (USD 1.37 billion) this fiscal year, but cut its forecast by 15 billion yen.
In this process, JSW Steel, the Indian subsidiary of JFE, took an important step by acquiring Thyssenkrupp Electrical Steel (TKES) India for USD 480 million. This acquisition reinforces JFE's leadership in electrical steel and has the potential to increase India's electrical grade steel production.
India currently imports more than 80 % of its high-quality electrical steel. However, with this agreement, the country is expected to become self-sufficient and reduce imports by 90 % As the adoption of renewable energy and electric vehicles increases, the demand for electrical steel is growing rapidly.
JSW aims to make India an export centre for high-quality electrical steel by leveraging the technologies of JFE and Thyssenkrupp. This co-operation will contribute to India's strengthening in the green energy and electric mobility sectors under the Atmanirbhar Bharat initiative.
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