Seoul, April 20 : South Korea's POSCO Group said on Monday it has signed a final agreement with India's JSW Steel to jointly invest 10.7 trillion won ($7.3 billion) to build a steel plant in India, as part of its strategy to establish a production hub in the South Asian country and strengthen its global supply chain.

The two companies signed a joint venture agreement in India, attended by POSCO Group Chairman Chang In-hwa and JSW Steel Chief Executive Officer (CEO) Jayant Acharya, according to POSCO Group, reports Yonhap news agency.

Under the agreement, POSCO and JSW Steel will each hold a 50 percent stake in the project to build an integrated steel mill encompassing the entire production process at a single site.

POSCO will invest about 5.3 trillion won in the project.

The plant, with an annual capacity of 6 million tons, will be built in Odisha, eastern India, with completion targeted for 2031.

POSCO and JSW Steel previously signed a memorandum of understanding in 2024 and a nonbinding heads of agreement last year for the project.

"Through this joint investment, we will combine POSCO's innovative steel technology with JSW Group's strong local competitiveness," POSCO CEO Lee Hee-geun said. "We will also strive to create future value, and contribute to the industrial development and economic growth of both countries."

Earlier, South Korean President Lee Jae Myung said he and Prime Minister Narendra Modi agreed to cooperate on stabilising energy supply chains to better navigate uncertainties stemming from the war in the Middle East.

Outlining the outcomes of his summit with Modi in New Delhi, Lee said he and the Indian prime minister focused on expanding trade and investment, and exploring new opportunities in critical minerals, energy, artificial intelligence (AI), finance and shipbuilding, among other sectors.

"In light of recent developments in the Middle East, we will continue to strengthen bilateral cooperation to ensure a stable supply of energy resources and key raw materials, including naphtha," Lee said during a joint press announcement.

/IANS