Sumitomo Metals, Bhushan Steel Sign MOU for Sheet Steel OEM in India

Sumitomo Metal Industries announced on Wednesday the firm signed memorandum of understanding with Bhushan Steel of India for original equipment manufacturing or Bhushan Steel’s manufacturing of Sumitomo Metals brand of sheet steel at Orissa works. Sumitomo Metals expands the cooperation with Bhushan Steel while Sumitomo Metals already provides technical support to Bhushan Steel’s integrated steel project in Orissa under the agreement in December 2007. Sumitomo Metals tries to follow growing Indian automotive and other sheet steel market through the OEM.

Sumitomo Metals provides technical support for construction and operation of sinter plant, coke oven, blast furnace, steel making and hot strip mill by Bhushan Steel along with automotive flat steel production technology. Sumitomo Metals decided to expand the tie-up to sheet steel OEM at Orissa. They try to meet high grade sheet steel demand in India through the combination of state of the art facility and Sumitomo Metals’ developed high level technology.

Indian reroller of Bhushan Steel makes cold rolled flat steel and coated steel with 54 billion rupees of sales for the year to March 2009. The firm builds blast furnace based integrated steel works in Orissa. The firm builds the annual 2.2 million tonnes of raw steel output capacity of works including blast furnace with 1,700 cubic meters of inner volume, direct reduced iron plant and hot strip mill as the first phase. The firm adds second blast furnace to expand the capacity to 5 million tonnes.