Japan Steelmakers Expanding into India

Tokyo, July 28 (Jiji Press)--Japanese steelmakers are expanding
into India, aiming to tap demand for high-end automotive steel products
there to offset the slowing domestic market.
The move reflects the growing vehicle production of Japanese
automakers in the fast-growing country, where total automobile output is
expected to reach five million units in 2016, about double the levels of
2008.
Nissan Motor Co. <7201> kicked off production in India in May,
while Toyota Motor Corp. <7203> is slated to launch operations at a new
plant late this year.
In the latest in a series of moves by Japanese steelmakers, JFE
Steel Corp., a core unit of JFE Holdings Inc. <5411>, said Tuesday it has
agreed to take a stake of 14.99 pct in India's largest private steelmaker,
JSW Steel Ltd.
With the deal, JFE Steel will acquire a production base in India.
Nippon Steel Corp. <5401> said in January it will begin automotive
steel production at a joint venture with India's Tata Steel Ltd. by the end
of fiscal 2012.
The top Japanese steelmaker will thus shift to local production for
supplies to Japanese automakers operating there.
In December last year, Sumitomo Metal Industries Ltd. <5405>
clinched a deal with New Delhi-based Bhushan Steel Ltd. that allows the
Japanese company to sell steel sheets provided by the partner under its own
brand.
Kobe Steel Ltd. <5406> in late 2008 formed a comprehensive business
tie-up with Mumbai-based Essar Steel Ltd., chiefly focusing on the
automotive steel business and eyeing a future joint venture.


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