JSW Steel to Acquire JFE Steel’s Shares in 1-2 Years

Mr. Sajian Jindal, vice chairman & managing director of Indian major steel maker, JSW Steel commented the firm promotes the value added steel production to supply for nuclear and aerospace industries and asks JFE Steel to provide technical cooperation in an interview with Japan Metal Bulletin on Monday. Mr. Jindal also said that the firm plans to make less than 5% shares of JFE Steel within one or two years and to increase the investment ratio in stages.

JSW Steel and JFE Steel bonded collaboration agreement in November 2009 and signed with agreements for JFE Steel to acquire 14.99% voting rights in JSW Steel in July. JFE Steel provides JSW Steel technology for the production of hot rolled, cold rolled and galvanized steel including automotive steel and utilizes JSW Steel as production sites to cultivate the market in India.

JSW Steel increases the raw steel production capacity of Vijayanagar works to 10 million tonnes from 7.8 million tonnes in March 2011 and plans to increase the capacity to 33 million tonnes establishing integrated steel works of 10 million tonnes annual capacity in West Bengal in 2014 and in Jharkhand. JSW Steel and JFE steel eye to the establishment of joint venture.