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Home arrow Auto component arrow Nippon Steel to set up automotive steel pipe plant in Neemrana, Rajasthan
Nippon Steel to set up automotive steel pipe plant in Neemrana, Rajasthan Print E-mail
Written by Vivek   
Wednesday, 27 October 2010
Mumbai: Japanese steelmaker, Nippon Steel Corporation will set up a an automotive steel pipe manufacturing plant in the Japanese zone at Majrakath, Neemrana Industrial Park, in Alwar district of Rajasthan.

Nippon Pipe India Pvt Ltd, which will be set up at an investment of 3000 million yen (1.5 billion INR), will undertake the manufacture and sale of automotive machine structural steel pipe for two-wheeled and four-wheeled motor vehicles.

With the Cutting & heat treating equipment in place by 2012, the plant will have a production capacity of 800t/month by 2012 which will go up to 2000t/month by 2014, when the electric-welded pipe manufacturing & cold drawing equipment are installed. The plant will employ around 60 people by 2012. This number will go up to 300 by 2014.

Siam Nippon Steel Pipe Co., Ltd. (NSC’s equity ratio 60.5%), a Thailand-based consolidated subsidiary, will set up Nippon Pipe India Pvt Ltd (name subject to change). Siam Nippon Steel Pipe Co will hold 98% in the company while Toshida Kogyo will hold 2%.

In India, Japanese automakers have been actively expanding their capacities, offering the prospect of a rapid expansion of the markets for pipes of medium and high grades in which we possess competitive strength.

NSC, uses the “Model of Integrated Manufacture” incorporating materials and pipe manufacture to cold drawing, heat treating and fabrication of auto parts and components. This was first established at SNP in Thailand and was never before practiced elsewhere in the world. This “Model of Integrated Manufacture” will soon be operative in India will enable the company to get a firm hold of business opportunities arising out of the briskly expanding demand for automotive pipe in India.

Nippon Pipe India Pvt Ltd, with a capital of  1400 million yen (700 million INR), is expected to start production with cutting and heat-treating activities in 2012. The manufacture of pipes and completion of integrated manufacturing setup is expected by 2014.

The project has been allotted 25 acres of land by Riico. A cheque of Rs 3.49 crore was presented to the managing director of RIICO, Rajendra Bhanawat, by the president of Siam Nippon, Teruhisa Takamoto, as 25 per cent of the cost of land.

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