ArcelorMittal,
the world's leading steel company, and Steel Authority of India Limited (SAIL)
inked a pact to set up an automotive steel manufacturing facility with an
estimated Rs 5,000-crore investment under a joint venture (JV) arrangement in India.
According
to a SAIL press release, a memorandum of understanding (MoU) was signed in
London by ArcelorMittal chairman and chief executive officer Lakshmi N. Mittal
SAIL chairman C.S. Verma. The proposed JV will construct a state-of-the-art
cold rolling mill and other downstream finishing facilities in India that will
offer technologically advanced
steel products to India's rapidly growing automotive sector.
India
is forecast to become the world's fourth-largest automobile manufacturing
nation by 2020 growing from approximately 3.5 million units to over 7 million
units.
In
response to the level of demand and supported by 'Make In India' campaign,
which has been designed to transform India into a global manufacturing hub,
automotive manufacturers have been establishing an increased presence in the
country.
Commenting
on the announcement, joint secretary Rakesh Singh, who was present during the
signing of the MoU, said, Increasing the availability of indigenously produced
automotive steel would reduce India's reliance on imports and provide the
Indian steel industry and the automotive industry with a sustainable competitive advantage .
Mittal
said that the company was in discussions with SAIL for some time and the pact
indicates its intention to further advance the collaboration. Bringing together
our leading automotive technological capabilities with SAIL's production scale
in India, in a similar manner to ArcelorMittals partnership with Hunan Valin on
our VAMA joint venture in China, is an exciting and powerful combination, he
said.
The
automotive sector is a highly strategic and important market for ArcelorMittal;
establishing an automotive focussed production presence in India, one of the
world's fastest growing automotive markets, is a natural progression in
executing our global automotive strategy, Mittal added.
source: businesstoday.intoday.in
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