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Bhushan Steel and Sumitomo Metals sign MoU for OEM Supply of Steel Sheets Print E-mail
Written by Vivek   
Thursday, 17 December 2009
New Delhi: Bhushan Steel Limited has signed a memorandum of understanding (MoU) with Sumitomo Metal Industries, Ltd. for the OEM supply of steel sheets manufactured in its Orissa Steel Works located at Meramandali, Orissa of India.

This MOU will enable Sumitomo Metals to establish a supply system for high-grade steel products manufactured at the steel plant, based on the Sumitomo Metals' accumulated technologies, to satisfy the needs of its customers in India. The steel product will be sold under the Sumitomo brand.

Sumitomo Metals has provided technical assistance regarding construction and operation of the Orissa Steel Works.

The 2.2 million tonne Orissa plant will begin its operations by January 2010. It's capacity would be raised to 5 million tonnes by 2012 end.

According to Neeraj Singal, Vice Chairman and Managing Director, the company will produce high grade HRC (Hot Rolled Coil) at the plant, with the transfer of technology from Sumitomo. This would serve the needs of various auto majors in India.The plant will be producing 1.9 million tonnes of hot rolled coil in the first phase. Sumitomo supplies sheet metal to most Japanese auto makers including Honda, Mazda, Suzuki and Nissan.

In the first phase the plant will also produce 0.3 mtpa of billets.

The company has plants in Sahibabad (Uttar Pradesh), Khopoli (Maharashtra), Meramandali (Orissa). It's sales totalled 54 billion rupees for year ended March 31, 2009.

Sumitomo is also exploring the possibility of acquiring a stake in Bhushan Steel's large Bengal steel project.Bhushan Steel has planned a 6-mtpa plant in Asansol, West Bengal. The first phase is expected to see an investment of nearly 20,000 crore, to set up a 3 million tonne steel plant and a 1000 MW power plant.

Sumitomo's stake in the West Bengal project is expected to be between 25 and 40 percent.

Last Updated ( Thursday, 17 December 2009 )
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