Tata Steel has signed a joint venture agreement with Nippon Steel Corporation of Japan to set-up a plant to make automotive cold-rolled steel, at an investment of Rs. 2,300 crore.
The plant will begin operations in 2013.
Tata Steel, which will hold 51 per cent in the venture, plans to set up the plant with a capacity of 600,000 tonnes at its facility in Jamshedpur.
Nippon Steel will hold the balance. This plant, according to a company statement, will be “India’s first continuous annealing and processing line.”
“The joint venture will source steel from Tata Steel’s plant. It will address the localisation needs of Indian automotive customers for high-grade cold-rolled steel sheet and meet the needs of the growing automotive industry,” it said.
While the chairman of the new joint venture will be nominated by Nippon, Tata Steel will appoint the Managing Director.
The Tata Steel-Nippon Steel joint venture, which was announced a few months ago, will be the third such tie-up between a Japanese steel maker and an Indian steel company for auto grade steel.
Sumitomo Metals tied up with Bhushan Steels to provide it the technical know-how for making auto grade steel at a 2.2 million tonnes per annum steel plant that Bhushan is setting up in Orissa.
JFE has invested nearly Rs. 4,800 crore for a 14.9 per cent stake in JSW Steel to provide the latter with the technology to make automotive grade steel.
Most of the Indian automobile manufacturers import their steel requirement, especially that for skin panels, with Nippon, Sumitomo and JFE being major suppliers to the global automobile manufacturers, especially Japanese and Korean companies.
The plant will begin operations in 2013.
Tata Steel, which will hold 51 per cent in the venture, plans to set up the plant with a capacity of 600,000 tonnes at its facility in Jamshedpur.
Nippon Steel will hold the balance. This plant, according to a company statement, will be “India’s first continuous annealing and processing line.”
“The joint venture will source steel from Tata Steel’s plant. It will address the localisation needs of Indian automotive customers for high-grade cold-rolled steel sheet and meet the needs of the growing automotive industry,” it said.
While the chairman of the new joint venture will be nominated by Nippon, Tata Steel will appoint the Managing Director.
The Tata Steel-Nippon Steel joint venture, which was announced a few months ago, will be the third such tie-up between a Japanese steel maker and an Indian steel company for auto grade steel.
Sumitomo Metals tied up with Bhushan Steels to provide it the technical know-how for making auto grade steel at a 2.2 million tonnes per annum steel plant that Bhushan is setting up in Orissa.
JFE has invested nearly Rs. 4,800 crore for a 14.9 per cent stake in JSW Steel to provide the latter with the technology to make automotive grade steel.
Most of the Indian automobile manufacturers import their steel requirement, especially that for skin panels, with Nippon, Sumitomo and JFE being major suppliers to the global automobile manufacturers, especially Japanese and Korean companies.
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