Joint Venture in India for Production and Sale of Automotive Cold-Rolled Steel Sheets

Nippon Steel Corporation (President: Shoji Muneoka, “NSC”) and Tata Steel Limited (Managing Director: H. M. Nerurkar, “TSL”) each decided to pursue a joint venture between NSC and TSL for the production and sale of automotive cold-rolled steel sheets at Jamshedpur Works, Jharkhand, India (“JV”), and approved the framework of the project. The JV is expected to capture India’s growing demand in the medium- to long-term, for high-grade, automotive cold-rolled steel sheets in response to the development of the automotive industry in 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.

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).

NSC and TSL have decided to further strengthen such relationship by pursuing the JV project.
Both companies will also continue to discuss further possible collaborations in other fields such as automotive galvanized sheets and up-stream processes.

Through the JV, NSC and TSL intend to address the needs of Indian automotive manufacturers to locally procure high-grade, cold-rolled steel sheets and will contribute to further expansion of automobile production in India.


Outline of the JV (tentative)

1) Objective; To respond to the demand for high-grade, cold-rolled steel sheets for automotive application mainly in India
2) Business; Production and sale of cold-rolled steel sheets mainly for automotive application
3) Product; Cold-rolled steel sheets (mainly for automotive application)
4) Facility (capacity); Continuous Annealing and Processing Line (C.A.P.L.) with a capacity of 600,000 tons per year
5) Technology; To license NSC’s technology for production of high-grade cold-rolled steel sheets for automotive application (including outer panels and high-tensile steel)
6) Employees; Around 200
7) Share; TSL 51%, NSC 49%
8) Location; Inside TSL’s Jamshedpur Works (Jharkhand, India)
9) Schedule; Execution of a joint venture agreement: June 2010
Operation startup: before March 2013