JFE Steel, JSW Steel Agree for Strategic Collaboration

JFE Steel and JSW Steel announced on Thursday they signed agreement in Mumbai for strategic collaboration. JFE Steel secures supply base for growing Indian automobile and steel market while JSW Steel gets higher technological ability when the firm expands the capacity. They try to realize collaboration in automotive flat steel area. They try to seek further cooperation for mutual benefit in various areas including JSW Steel’s integrated steel project in India, joint shareholding and raw materials procurement.

JFE Steel provides production technology of hot, cold and hot-dip galvanizing steel for automobile. JFE Steel also supplies automobile flat steel for further processing while they provide joint service for automakers in application engineering and products development.

They keep talking for further cooperation. They study joint shareholding and cooperation in various areas including JSW Steel’s West Bengal steel project, raw materials procurement, steel products other than automotive application, energy saving and environmental measurement and improvement of quality and yield.

JSW Steel is one of Indian second largest steel makers as Tata Steel while the top maker is state run SAIL. JSW Steel with annual 7.9 million tonnes of raw steel output capacity supplies flat steel, wire rod and bar while the firm is Indian largest coated steel and colored galvanizing steel exporter. The firm posted 11.1 billion rupees with 171.1 billion rupees of sales in the year to March 2009. JSW group has business in mining, power generation, gas, port, aluminium, cement and information technology.

JSW Steel operates integrated steel plant in Vijayanagar in Karnataka, India. The steel plant launched no.3 blast furnace with 4,000 cubic meters of inner capacity in first half of 2009 and starts operation of no.4 blast furnace in 2011 completing the expansion to 11 million tonnes of raw steel output capacity. The firm starts operation of state of the art wide hot strip mill in March 2010. The firm expands the raw steel output capacity to 32 million tonnes in 2020 through integrated steel plant in West Bengal and Jharkhand.

JFE Steel’s president Hajime Bada said at press conference after the signing ceremony in Mumbai the firm seeks synergy through the cooperation in automotive steel and other areas. JFE Steel’s vice president Eiji Hayashida at press conference in Tokyo they keep talking for joint shareholding while the firm eyes potential investment in JSW Steel’s integrated steel project.