JFE and JSW tie-up for auto steel production

November 20, 2009: JFE Steel Corporation and JSW Steel Limited have entered into a strategic tie-up

yesterday, primarily focused on automotive steel production. This came in the wake of consistent growth posted by the auto sector in the country.

The collaboration in this sector also includes supply of substrate materials for hot rolled, cold rolled and galvanized products to the auto sector. The agreement covers joint service activities comprising application engineering and product development for automotive customers.

As JFE was aiming to secure a local production base to tap the high-growth Indian market, both the companies joined hands. Hajime Bada, president and chief executive officer of JFE steel said, "JFE, with this agreement, is determined to intensify its relationship with JSW to serve the request of its automotive customers, which are rapidly expanding production, in local procurement of value-added steel products. This agreement shall also provide JFE an avenue to look into the future possibilities of development in India," said the company.

Both the companies intend to have similar collaboration in project for building and operating an integrated steel production facility in JSW's West Bengal steel project. Apart from this, procurement of raw materials both in India and outside along with production of steel products other than automotive steel also found place in their priority list.

Sajjan Jindal, vice chairman and managing director, JSW steel said, "This collaboration opens up new vistas for our massive expansion projects and is an important milestone in JSW's mission of moving up the value chain in steel production," as per the company release.

Source: Steel Insights Daily