NEW DELHI: Jindal Stainless LtdBSE 2.55 % (JSL) has entered into a strategic agreement with Korean steelmaker Posco, which will help JSL stabilise production of alloy used in cars and home appliances.
JSL is the largest domestic stainless steel producer. Under the agreement to be announced on Wednesday, JSL will sell stainless steel to be rerolled at Posco's South East Asia units, according to two persons in the know of the development.
A senior delegation from the Posco will be in Delhi for the announcement. The commercial value of the offtake agreement could not be ascertained. In an email response, a JSL spokesperson said, "As a policy, Jindal Stainless does not respond to market speculation."
The South Korean company, struggling to set up a greenfield integrated carbon steel plant in the country for the past eight years, is the world's largest producer of stainless steel.
This agreement is independent and does not have any synergy with Posco's greenfield project, the source clarified. The stainless steel JV comes at an opportune time for the Ratan Jindal-led JSL, as the group has invested close to Rs 10,000 crore in an integrated stainless steel plant in the Kalinga Nagar industrial estate of Odisha. JSL is yet to get a captive supply of chrome.