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MACHINIST - Essar and Kobe ink MoU for collaboration in advanced high-strength steel

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Essar and Kobe ink MoU for collaboration in advanced high-strength steel
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Written by Vijay   
Thursday, 16 December 2010

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Mumbai: Essar Steel Limited has signed MOUs with  Kobe Steel Ltd. of Japan for collaboration in the areas of technology for manufacturing advanced high-strength steel (AHSS) grade steel sheets used in automotive and other relevant applications.

Essar Steel and Kobe Steel will explore the possibility to set up a joint venture to design, construct, own and operate a continuous annealing line (CAL) and a continuous galvanizing line (CGL for galvannealed (GA) steel sheets).

Kobe Steel, Ltd. and Essar presently have an umbrella agreement which encompasses the sharing of advanced technology and resources to manufacture high grade iron and steel products to help address the growing demand for high-grade steel products in India.

"The auto industry is expected to be a major driver for steel demand in the country in the years to come. This MOU will further strengthen Essar Steel’s product portfolio to enable it to produce steel for high-end applications in the auto segment," said Mr. Malay Mukherjee, CEO, Essar Steel Business Group.

Essar Steel has a global steel production capacity of 15 million tonnes per annum (MTPA). It operates seven Service Centre’s in India and Indonesia with an aggregate capacity of over 4.5 million tonnes.

Kobe Steel, Ltd. is one of Japan’s leading steelmakers and producers of aluminum and copper products. In the year ended March 2010, Kobe Steel produced 6.57 million metric tons of crude steel and had consolidated sales of 1.67 trillion yen (US$18.0 billion).

 
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