Tata signs deal with Nippon Steel
Tata Steel has announced on Friday that it has signed a joint venture deal with Nippon Steel for establishing an Rs 2,300-crore worth specialty steel-making line.
The capacity of the plant will be 60,000 tonnes annually at Jamshedpur to serve domestic auto sector. The project is likely to be operative within next three years.
Tata Steel will be holding a majority stake of 51% in the not yet named joint venture entity as the Japanese major would own the remaining 49% stake. This has been informed by the domestic steel major in a filing to the Bombay Stock Exchange.
It has informed that the Continuous Annealing and Processing Line projects will be established at a price of around Rs 2,300 crore and it is expected to be operative by 2013. It has further added that the entity was expected to be incorporated in 30 days.
The joint venture entity could provide steel from Tata Steel's Jamshedpur plant and make use of Nippon Steel's technology for the manufacture of high-grade cold rolled steel sheet for meeting the rising requirements of the Indian automobile sector. According to a statement released by the company, the head of the joint venture will be nominated by Nippon while Tata Steel will nominate the managing director.
