Steel Authority of India Limited (SAIL) and ArcelorMittal on 22 May 2015 signed a Memorandum of Understanding (MoU) to set up an automotive steel manufacturing facility under a Joint Venture (JV) arrangement in India.
The MoU was signed in London by CS Verma, Chairman of SAIL and Lakshmi Mittal, Chairman and CEO of ArcelorMittal in the presence of Rakesh Singh, Secretary to the Government of India, Ministry of Steel.
The 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 the country’s rapidly growing automotive sector.
To operationalise the MoU, a working group with representatives from both companies will be set up to evolve a structure for the proposed JV and carry out feasibility studies as part of a comprehensive due diligence process.
The proposed plant will help to meet growing demands of the Indian automotive sector which is poised to become the world’s fourth largest automobile manufacturing nation by 2020 with the production of approximately 7 million units per annum from the present 3.5 million units per annum.
The agreement is also in tune with the Union Government’s Make In India campaign which has been designed to transform India into a global manufacturing hub.
At present, while the ArcelorMittal is the world’s leading steel supplier to the global automotive sector with a market share of approximately 17 per cent, SAIL is India’s largest steel producer with 13.5 million metric tons production per annum.
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When: 22 May 2015