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Home arrow Defence arrow JSW Steel and JFE Steel Corp to collaborate for Automotive Steel Production
JSW Steel and JFE Steel Corp to collaborate for Automotive Steel Production Print E-mail
Written by Jeeva   
Friday, 20 November 2009
Mumbai: JSW Steel Ltd. and Japan's JFE Steel Corporation have signed an agreement intending to collaborate with each other in India in the area of automotive steel including production technologies and supply of substrate materials for hot rolled, cold rolled and galvanized products.

The scope of collaboration also covers joint service activities including application engineering and product development for automotive customers. Separate detailed agreements which shall spell out the scope and time-frames will be executed between the two companies area by area.

"JFE, with this agreement, is determined to intensify its relationship with JSW to serve the request of its automotive customers, which are rapidly expanding production, in local procurement of value-added steel products. This agreement shall also provide JFE an avenue to look into the future possibilities of development in India," said Mr. Hajime Bada, President and CEO of JFE steel.

The collaboration is subject to obtaining all regulatory approvals, entering into definitive agreements, and fulfilling all conditions precedent as may be agreed to between the parties in the definitive agreements.

JFE and JSW have also arrived at a broad consensus on the areas where possible mutual collaboration can be explored in India in the near future in accordance with applicable laws. The areas include the production of steel products other than automotive steel, energy reduction programmes, environmental programmes, quality and yield improvement programmes, performance audit of JSW facilities, benchmarking of techno-economic parameters between the parties, procurement of raw materials both in and outside of India, project for building and operating an integrated steel production facility in JSW’s West Bengal Steel Project, mutual Stockholding and other items which may come in the mutual interest of the parties.

Mr. Sajjan Jindal, VC & MD of JSW steel said, “This collaboration opens up new vistas for our massive expansion projects and is an important milestone in JSW’s mission of moving up the value chain in steel production.”

JSW Steel is expanding its production capacity to 11 million ton per annum by 2011 from the current levels of 7.8 million ton per annum and is the largest private integrated steel manufacturer in India based on installed capacity. The company achieved a significant volume growth of 54% in crude steel production and 74% in saleable steel during the second quarter of FY 09-10. JSW is poised to become a major player in the value added segment of products. Its extra wide state-of-the-art Hot Strip mill will be ready by March 2010. The company has plans to expand its capacity to 32 million ton per annum by 2020 by setting up Greenfield projects of 10 million ton per annum each in Jharkhand and West Bengal. JSW is rapidly expanding its capacity and upgrading its technologies with its investment in various projects.

JFE is the second largest steel company in Japan with an annual production of 33 million tones in year 2008, and ranks sixth in the world. JFE is aiming to secure a local production base to serve customers in the high-growth Indian market.

 
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