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| Edited By: Shubhashish |Source: DNA |Updated: Mar 17, 2018, 02:46 AM IST
Tata Steel will soon form a joint venture with Nippon Steel, the world’s second-largest steelmaker, to produce and sell high-tensile auto-grade steel in India. Tata Steel will hold 51% stake in the venture, which will be formed by the end of the 2012 financial year.
“The companies will continue to discuss the terms and conditions concerning the JV, and aim to sign a definitive agreement by June 2010 and start operation before March 2013,” Nippon Steel said in a statement.
The financial details of the deal weren’t available.
Nippon said, tentatively, the JV will set up a continuous annealing and processing line (CAPL) with a capacity of 6 lakh tonne per year. Moreover, Tata Steel will have a licence to use Nippon’s technology to produce and sell high-tensile steel to automakers in India.
International automakers like Honda, General Motors and Hyundai Motors currently import steel for making automobiles. With this JV, Tata Steel hopes to discourage the automakers from importing the special steel and, instead, buy from Tata.
Nippon has been providing technical assistance to Tata Steel
since 2000 in the cold-rolling division of the Jamshedpur steel plant. “Both companies will also continue to discuss further possible collaborations in other fields such as automotive galvanised sheets and up-stream processes,” Nippon said.
Tata Steel is the third Indian steelmaker after JSW Steel and
Bhushan Steel to join hands with Japanese steelmakers for
auto-grade steel. JSW Steel and JFE Steel, Japan, had signed a similar deal in November last year. Bhushan Steel, a Delhi-based cold-roller has also announced plans to join hands with Sumitomo Metals for a technical tie-up.
