Essar Steel Signed Agreement with Kobe Steel

Ruias promoted Essar Steel on 15 December 2010 signed an agreement with Japanese firm Kobe Steel for a study to jointly manufacture products for the auto sector in India. According to the terms of the agreement, both the companies will explore the possibility to set up a joint venture to design, construct, own and operate a continuous annealing line (CAL) and a continuous galvanising line used in automotive sector. The MoU will strengthen Essar Steel’s product portfolio and in the process enable it to produce steel for high-end applications in the auto segment. The MoU will ensure collaboration in areas of technology for manufacturing advanced high-strength steel (AHSS) and grade steel sheets used in automotive and other relevant applications.

Essar which currently has an aggregate production capacity of over 4.5 million tonnes (MT) plans to expand the capacity to 10 MT by March 2012. Kobe Steel on the other hand is among the leading Japanese steel makers and producers of aluminium and copper products and produces 6.57 million metric tons of crude steel. Kobe Steel had consolidated sales of 1.67 trillion yen (USD 18 billion) in 2009-10.