Wednesday, October 20,
Japanese steelmaker Nippon Steel announced on Tuesday that it would invest Rs 164 crore (3 billion yen) in an automotive steel pipe plant in to be set up in Rajasthan by 2012.
The plant will supply electric-welded pipes for cars and motorcycles. The products are used mainly for exhaust pipes in cars, impact beams and beams in the engine. The initial facility will be 10,000 tonnes per annum.
The facility will be the Japanese maker’s first such in India. Nippon had earlier in the year signed a joint venture deal with Tata Steel to produce auto-grade steel from the latter’s Jamshedpur plant.
Nippon plans to sell the steel pipes to Japanese automakers in India which include the likes of Maruti Suzuki and Honda. Maruti already sources some flat steel products from Nippon in Japan.
This is the third time in the last year that a Japanese steelmaker has targeted the Indian auto market. JFE recently picked up a 14.98% stake in JSW to produce auto-grade steel while Sumitomo Metals signed a deal with Bhushan Steel.
Most carmakers have been expanding their facilities to cater to the growing demand in the country. The Society of Indian Automobile Manufacturers estimates growth to be around 13 per cent this fiscal.
Source: The Business Line
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