Saturday, March 12,
Friday’s deadly earthquake in Japan might push steel companies from that country to speed up plans to build manufacturing presences in safer and low-cost countries such as India, said industry executives who have collaborated with Japanese steelmakers for joint ventures here..*
Indian steel companies, that make construction grade products, however said it is early to assess the opportunity to supply products to Japan to assist in reconstruction of regions affected by the earthquake.
Japan’s top four steelmakers, Nippon Steel, JFE Steel, Sumitomo Metals and Kobe Steel already have a presence in India through joint ventures.
It’s too early to say anything, but definitely, Japanese companies should explore the idea of having larger manufacturing plants in India as we have the market as well as resources here, said C S Verma, chairman of state-owned SAIL, which has a tie up with Kobe Steel to use low grade iron ore for steelmaking.
The earthquake and tsunami has affected major steelmakers along Japan’s Pacific coast. The coke oven gas plant at JFE Steel’s Chiba works caught fire. The integrated works in raw materials yards on Tokyo Bay such as Nippon Steel’s Kimitsu works and JFE Steel’s Chiba and Keihin works have also been affected. The most affected region, Sendai city itself, is home to JFE Bars & Shapes and Itoh Steel.
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