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Tata Steel & Nippon Steel to form JV for automotive cold-rolled flat products
Written by Ganesh   
Friday, 29 January 2010
Mumbai: Tata Steel Board today approved a framework for a joint venture between Tata Steel Limited (TSL) and Nippon Steel Corporation (NSC) for the production and sales of automotive cold-rolled flat products at Jamshedpur, Jharkhand, India.

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. TSL will hold 51% and NSC will hold 49% of equity capital of the Joint Venture Company.

NSC will transfer its technology for producing high-grade cold-rolled steel sheet for automotive application, including skin panels and high tensile steels. The joint venture aims to capture the growing demand for high-grade automotive cold-rolled flat products in India by setting up a Continuous Annealing and Processing Line (CAPL) with a capacity of 600,000 tonnes.

The facility is expected to employ around 200 people.and will be located inside TSL’s Jamshedpur Works (Jharkhand, India).

This joint venture agreement is expected to address the localisation needs of Indian automotive customers for high-grade cold-rolled steel sheet and contribute to further expansion of the Indian automobile industry.

Since cooperation in engineering concerning TSL’s cold-rolling mill which began operation in 2000, NSC has been cooperating with TSL in the field of automotive flat products (including technical assistance on automotive cold-rolled steel sheets) and other areas (such as cooperation with TSL in its expansion of Jamshedpur Works and the planning of its new integrated steel works).

In addition to this, both companies will continuously discuss further collaboration in other fields such as automotive CGL or up-stream processes etc.

 
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