Sumitomo Metals to Support Bhushan Steel’s Steel Project Technically

Sumitomo Metal Industries announced on Thursday the firm signed agreement with Indian cold rolling flat steel maker, Bhushan Steel to provide technical support for Bhushan Steel’s integrated steel project in Orissa. Sumitomo Metals tries to expand the partnership with Bhushan Steel eyeing potential flat steel supply for Indian transplant of Japanese automakers. Bhushan Steel plans to build integrated steel plant with blast furnace, steel making shop and hot rolling mill. The firm builds annual 2.2 million tonnes of integrated steel plant with a blast furnace with 1,700 cubic meters inner capacity, direct reducing iron plant and hot rolling mill in 2008 as the first phase. The firm expands the capacity to 5 million tonnes by adding a blast furnace by 2010. The total investment is expected to be US$ 3 billion. With request from Bhushan Steel, Sumitomo Metals decided to provide technical support for the project in construction and operation of sinter plant, coke oven, blast furnace, steel making shop, continuous caster and hot rolling mill. The firm also agreed with Bhushan Steel to keep providing technical support for automotive flat steel making. Sumitomo Metals launches the project team led by managing director Hideo Okuda. The firm will send engineers to India and keeps talking with Bhushan Steel for the detail including compensation for the support. Sumitomo Metals has provided technical support for cold rolling operation and annual 50,000 tonnes of hot rolled band since 1997. With the new agreement, the firm studies potential sharing of Bhushan Steel’s steel source and revises hot band supply scheme. The firm tries to develop growing Indian market through the tie-up and eyes further activity in the country as growth strategy for the sheet business. Bhushan Steel enters integrated steel business by the project to provide hot band for Sahibabad plant with cold rolling and galvanizing operations and Mumbai plant with cold rolling, galvanizing and tube making operations. The firm with around 2,750 of employees produced 900,000 tonnes and sold 38.1 billion rupees for the year to March 2007.