JFE Steel, JSW Steel ink deal to jointly cash in on Indian demand+

TOKYO, Nov. 19 Kyodo - JFE Steel Corp. said Thursday it and India's JSW Steel Ltd. have entered into a comprehensive deal to collaborate to transfer its automobile-related products technology to the Mumbai-based manufacturer with an eye to cashing in on burgeoning demand for automobiles and other steel products in India.

JFE, the core operating company of JFE Holdings Inc., is also considering
funneling capital into JSW in light of JSW's plans to expand investments in
production facilities, the Tokyo-based steelmaker said.
JSW presently has an annual crude steel production capacity for 7.8 million
tons, which is roughly equivalent to that of JFE rival Kobe Steel Ltd. JSW
plans to boost the capacity to 11 million tons in 2011.
JFE has judged that JSW is a promising ally in view of these numbers. JFE is
keen on supplying steel materials to Japanese makers of automobiles and other
steel products which are moving to boost production in India.
JFE intends to begin the initial phase of cooperation by providing JSW with
substrate materials for a range of steel products.
Later, it is planning to expand its scope of collaboration in such areas as
measures to protect the environment and joint procurement of steel materials.
Demand for sophisticated steel products such as those for automobiles is
growing in India.
The situation has led Nippon Steel Corp. to consider setting up a joint venture
with Tata Steel Ltd. there, while motivating other Japanese steelmakers to
consider a range of measures to capitalize on the Indian demand.
==Kyodo
2009-11-20 00:33:30