On January 24, the company announced another major development – it officially signed a strategic cooperation agreement with the Central Road Research Institute (CRRI) under the Council of Scientific and Industrial Research (CSIR) to jointly promote a steel slag resource utilization project. This initiative will convert industrial waste residue generated during steelmaking into road construction materials, not only providing an innovative solution for industrial solid waste disposal but also supporting the green and low-carbon transformation of India’s infrastructure construction.
Core Operations: Q3 Output Grows Against Headwinds, High Production Capacity Resilience
Steady Output Growth, Overcoming Production Capacity Disruptions
According to regulatory filings submitted by JSW Steel, in the third quarter of FY2026, the company’s total steel output increased by 6% year-on-year to 7.48 million tons, demonstrating strong production capacity resilience. Notably, the No. 3 blast furnace at the company’s Kalinagar steel plant in southern India was shut down for scheduled maintenance during the quarter (expected to resume production in Q4), while the flagship Vijayanagar plant also underwent phased maintenance. Despite these dual production capacity disruptions, the company still achieved year-on-year output growth, mainly driven by the efficient operation and optimized allocation of production capacity across its other manufacturing bases.
In terms of output structure, although official detailed breakdown data has not been disclosed, combined with the overall demand situation of India’s steel industry, JSW Steel’s output growth in this quarter is mainly supported by the steel demand brought about by domestic infrastructure construction and the recovery of the automobile manufacturing industry. Data shows that India’s apparent steel consumption increased by 4.2% year-on-year in 2025, and continuous infrastructure investment has provided a stable demand market for steel enterprises, which is also one of the core reasons for JSW Steel’s high production capacity utilization rate.
Continuous Optimization of Strategic Layout, Consolidating the Foundation for Long-term Growth
Behind the steady output growth is JSW Steel’s forward-looking layout in production capacity allocation and raw material guarantee. In October 2025, the company announced plans to build a new 500,000-ton-per-year steel scrap processing plant in Chennai, which will mainly handle end-of-life vehicles and white goods to supply high-quality steel scrap raw materials for new steel plants in southern India. By strengthening the recycling of steel scrap, the company aims to reduce carbon emissions and raw material costs. The new plant will replicate the mature steel scrap supply chain model in western India, further improving the southern steel scrap ecosystem and laying the foundation for the company’s long-term production capacity expansion and green transformation.
Industry analysts point out that as one of India’s largest steel producers, JSW Steel has maintained operational stability amid industry fluctuations relying on its sound production capacity layout, efficient production management and flexible market response capabilities. The countercyclical growth in Q3 output has further consolidated its leading position in India’s steel market.
Green Transformation: Partnering with Authoritative Institutions to Open New Paths for Steel Slag Resource Utilization
Signing Strategic Cooperation Agreement, Focusing on High-value Utilization of Steel Slag
While achieving steady output growth, JSW Steel is accelerating its green and low-carbon transformation. On January 24, the company officially signed a cooperation agreement with CSIR-CRRI. The two parties will focus on “steel slag resource utilization” to carry out special research and engineering practices, and jointly promote the project “Development of Customized Resource Utilization Technology for EOF and LRF Steel Slag from JSW Salem Plant and Its Techno-economic Transformation in Road Applications”. This project focuses on converting steel slag generated from the Electrically Optimized Furnace (EOF) and Ladle Refining Furnace (LRF) of JSW Steel’s Salem plant into high-quality aggregates suitable for asphalt road construction, realizing the high-value and resource-based utilization of industrial solid waste.
According to the cooperation agreement, CSIR-CRRI will be responsible for core tasks such as laboratory characteristic analysis of steel slag, development of customized processing technology, construction of demonstration road sections and long-term performance monitoring; JSW Steel will provide steel slag raw materials and cooperate in the on-site project implementation. The demonstration road section of this cooperation will be located near the Salem plant, and once completed, it will serve as an important reference sample for the promotion of steel slag road technology in Tamil Nadu and across India.
Multiple Values Highlighted, Aligning with Circular Economy and Infrastructure Needs
As a major industrial by-product of steel production, approximately 200 kilograms of steel slag is generated for every ton of steel produced. India’s annual steel slag output reaches 19 million tons, with a large amount of historical inventory. Traditional disposal methods not only occupy land resources but also may cause environmental pollution. The cooperation between JSW Steel and CSIR-CRRI precisely addresses this industry pain point, with significant economic, environmental and social values.
From a performance and economic perspective, steel slag has advantages such as high strength, high wear resistance and strong load-bearing capacity, which are far superior to traditional natural aggregates. Roads paved with steel slag have a longer service life and lower construction costs. Satish Pandey, Chief Scientist of CSIR-CRRI, previously stated that steel slag roads do not rely on natural aggregates, which can significantly reduce raw material procurement and transportation costs, while their durability is significantly improved, effectively reducing road maintenance expenses. From an environmental perspective, this technology can reduce reliance on natural stone mining, mitigate ecological damage caused by quarrying, and reduce pollution from steel slag landfilling, supporting dual carbon reduction in the steel and infrastructure industries. In addition, India is in a period of accelerated infrastructure construction, with huge demand for aggregates in road construction. The resource utilization of steel slag provides a new supplementary channel for infrastructure material supply, aligning with the Indian government’s development vision of “turning waste into treasure” and the “Aatmanirbhar Bharat” (Self-Reliant India) strategy.
Industry Impact: Setting a Benchmark to Promote Green Upgrade of the Entire Industrial Chain
In fact, there have been successful application cases of steel slag road technology in India. Earlier, JSW Steel participated in the construction of India’s first cement concrete steel slag road near its Dolvi plant in Maharashtra. Currently, the 1-kilometer demonstration road section has been basically completed, with excellent performance monitoring data, which has been highly recognized by the National Highways Authority of India (NHAI). This in-depth cooperation with CSIR-CRRI is a further upgrade based on previous practices, which will promote the resource utilization of steel slag from “single-point demonstration” to “large-scale promotion”.
Driven by JSW Steel, a number of other Indian steel enterprises such as Tata Steel and AMNS India have launched steel slag road projects under the technical guidance of CSIR-CRRI, and the atmosphere of green transformation in the industry is becoming increasingly strong. Industry experts said that as an industry leader, JSW Steel continues to increase investment in green technology R&D and application while maintaining steady output growth. It not only achieves sustainable development of its own operations but also provides a replicable and promotable practical path for India’s steel industry and even the global steel industry to practice the circular economy.
N. Kalai Selvi, Director General of CSIR, emphasized at the cooperation signing ceremony that the promotion and application of steel slag road technology can not only solve the problem of industrial solid waste disposal but also promote the green transformation of infrastructure construction, which is of great significance for India to achieve its carbon emission reduction goals and circular economy development. Senior management of JSW Steel’s Salem plant also stated that this cooperation is an important part of the company’s sustainable development strategy. In the future, it will continue to deepen cooperation with scientific research institutions, promote the implementation of more green technologies, and contribute to the high-quality development of India’s steel industry.
