In what could be a significant boost to the Indian electrical equipment manufacturing fraternity, JSW Steel has signed an agreement with JFE Steel Corporation of Japan to conduct a feasibility study of a potential local manufacturing facility for grain-oriented electrical steel sheets, popularly known as cold-rolled grain-oriented steel or CRGO.
JSW Steel, in a statement, announced that the MoU signed with JFE is for jointly conducting a feasibility study to establish a facility for manufacturing and sale of grain-oriented electrical steel sheets, in India.
The plan is to complete the study within the current fiscal year (which is by March 31, 2022) and to take appropriate steps to set up the joint-venture company subject to requisite approvals.
Taking the JFE partnership forward
The MoU between JSW and JFE for CRGO steel takes the association between the two companies even further.
In 2009, the two companies signed a a comprehensive strategic collaboration agreement under which JFE Steel took an equity stake in JSW Steel, and has provided technical cooperation with regard to automotive steel products.
In 2012, JSW and JFE entered into an agreement where JFE has provided technology for the production of non-oriented electrical steel sheets, which has enabled JSW to become India’s leading supplier in this field. Non-oriented electrical steel is also known as cold-rolled non-grain oriented steel or simply CRNGO.
Partner in cutting-edge technologies
According to Seshagiri Rao, Joint MD, JSW Steel & Group CFO, “This feasibility study for a JV with JFE Steel for manufacturing Grain Oriented Electrical Steel Sheet in India will strengthen our position as India’s leading manufacturer of advanced steel products that lead to reduced CO2 emissions and a more sustainable world. Our partnership with JFE Steel since 2009 has provided us access to cutting-edge technologies and world-class technical expertise to enhance our operational excellence.”
What is CRGO Steel?
CRGO steel is a highly specialized form of steel that has excellent magnetic properties due to which it is highly useful during the manufacture of electrical equipment, primarily transformers. CRGO steel exhibits properties like high magnetic flux density and low iron loss and is therefore used in transformer cores. CRNGO steel, on the other hand, finds application in iron cores of generators, motors, electrical appliances, etc.
Things to know about CRGO Steel (compiled by T&D India)
- Manufacturing CRGO steel is a highly complex process; the technology is well guarded
- There are only around a dozen manufacturers of CRGO Steel, worldwide
- India meets its entire demand for CRGO steel through imports
- India has been trying to make CRGO steel for over five decades, without much success
- Indian transformers allegedly use scrap/inferior CRGO resulting in poor performance of transformers
- India has since a few years made it mandatory for all foreign manufacturers supplying to India register their products with BIS (Bureau of Indian Standards).
- Korean company POSOCO that shelved its plans to set up a mega steel facility in India (Odisha) was to produce electrical steel, as part of its range of special steels.
- JFE is amongst the world’s prominent supplier of CRGO steel.
