Nippon Steel, Tata Steel Eye High Grade Cold Rolled Steel JV in India

Nippon Steel’s president Akio Mimura said on Tuesday the firm is in talk with Tata Steel of India to launch high valued cold rolled sheet steel joint venture for Automobile industry in India. Mr. Mimura said they try to produce facility to make high valued sheet including high tensile steel. He indicated they could start continuous annealing and pickling line joint venture. Nippon Steel tries to meet growing Indian demand through soft alliance partner eyeing galvanizing steel operation in India in future depending on the country’s automobile industry, which could enter into export market. Nippon Steel and Tata Steel are still in talk for time flame and detail. Mr. Mimura said they launch minimum facility to provide high valued cold rolled steel for automobile. Nippon Steel eyes continuous annealing pickling line at first and tries to expand the operation. Indian automobile industry uses mainly cold rolled sheet steel as outer panel when they focus on lower cost, instead of higher corrosion resistance. Indian government tries to grow the industry as export force and the industry could adjust the quality to export level including outer panel.Nippon Steel tries to launch local operation for high valued steel though partnership with Tata Steel. Nippon Steel tries to expand the operation to potential galvanizing line to meet needs by local automobile industry, which could shift to use higher grade steel products.