Wednesday, December 01,
Kobe Steel Ltd., Japan’s fourth- largest maker of the alloy, will form a technology tie-up with Steel Authority of India Ltd. and consider jointly making high- value sheets used in cars and nuclear-power plants.
A “strategic collaboration” agreement was signed and the possibility of forming a venture that will use Kobe’s expertise in low-grade iron ore is being evaluated, Steel Authority said today in a statement to the Bombay Stock Exchange.
Japanese steelmakers including Kobe and larger rivals Nippon Steel Corp. and JFE Holdings Inc. are seeking alliances in emerging markets as demand languishes at home. Indian steelmakers on their part are seeking technology to make superior grades of the metal as rising incomes boost sales of automobiles, home appliances and transformers.
“India is a very promising market,” Kobe spokesman Gary Tsuchida said today by telephone. “Both companies are looking forward to the potential areas of cooperation. We feel Steel Authority would be a good partner in the growing Indian market.”
“Kobe Steel and Steel Authority have begun a feasibility study for a joint venture that utilizes Kobe Steel’s ITmk3 iron- making process,” Kobe said in the statement.
Source: Bloomberg
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