STEEL PRODUCERS HEADLINESSteel Producers
Mukand and Sumitomo Establish Joint Venture for Longs Processing in India
Aug. 17, 2012 India’s Mukand Limited and Japan’s Sumitomo Corporation have agreed to establish a joint venture company for the secondary processing of specialty steel long products in India. Mukand will hold a 60% interest in the company and Sumitomo will hold the remaining 40%.
Concerning establishment of the new company
Against a background of rapid economic growth, the consumer base for two-wheeled and four-wheeled vehicles has been rapidly expanding in India.
The two-wheeled vehicle market in India is now the second largest in the world. The market for four-wheeled vehicles, mainly small cars, doubled over the last five years to quickly become the sixth largest in the world.
Automotive manufacturers worldwide are expanding their range of products by bringing strategically designed cars to the expanding Indian market. To keep up with increasing demand for specialty steel products for automobile parts, Mukand and Sumitomo Corporation will establish the new company for manufacture and sale of secondary processed specialtysteel and stainless steel long products in October 2012.
Outline of business
The new company will take over Mukand's business for secondary processing of specialty steel long products for consideration of approximately INR 2525 million, and continue to operate Mukand's current plant for a while after the new company's establishment. Production capacity is 6,000 tonnes per month. The new company plans to immediately begin building a new plant in Lonand, Satara District, Maharashtra State to expand production capacity in response to increasing demand.
The new company will perform secondary processing of specialty steel and stainless steel long products from hot rolled long products provided by Mukand and provide materials mainly to automotive parts manufacturers. Bringing together Mukand's manufacturing and engineering capabilities and Sumitomo Corporation's sales expertise and management know-how, the new company will aim to be a leading company in the Indian specialty steel market.
Mukand is a specialty steel manufacturer of long products in India. Mukand has high engineering and development capability based on accumulated know-how, and is a leader in the specialty steel long products industry in India. Mukand products are also broadly accepted by Japanese, European and U.S users in the Indian market and are exported to Europe, Middle East, China and so on.