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Nippon, Tata to Form Joint Venture for Cold-Rolled Steel Sheets
Jan. 29, 2010 Nippon Steel Corp. and Tata Steel Ltd. have approved the framework of a joint venture for the production and sale of automotive cold-rolled steel sheets at Jamshedpur Works, Jharkhand, India. The companies expect the JV to capture India’s growing demand in the medium- to long-term for such products due to the development of the country’s automotive industry.
The companies will continue to discuss the terms and conditions concerning the JV. They are aiming to sign a definitive agreement by June 2010 and start operation before March 2013. Tata Steel will hold a 51% share, Nippon Steel 49%.
The two have previously cooperated in the field of automotive flat products, including technical assistance on automotive cold-rolled steel sheets, and other areas such as with Tata’s expansion of Jamshedpur Works and the planning of its new integrated steel works.
The companies say they will continue to discuss further possible collaborations in other fields such as automotive galvanized sheets and up-stream processes.