ET reported that Nippon Steel Corporation and TATA Steel Limited are in talks to set up a blast furnace facility in India through a JV. The proposed furnace, to be set up with an estimated investment of JPY 200 to JPY 300 billion and with a production capacity of 3 million tonnes a year, is expected to start production in 2013.
Nippon steel is eyeing the venture to increase its production in India and other emerging markets and to offset the negative impact of a strong yen as the company seeks to tap overseas demand. The JV could follow up with a second furnace if demand increases.
TATA steel expects to boost its production of high end steel material used in automotive industry through the JV. The duo has already agreed to produce automotive cold rolled steel sheet, with TATA Steel taking a 51% stake and Nippon Steel obtaining 49%.
The venture is expected to set up a facility by the end of fiscal 2012 that will be capable of producing 600,000 tonnes annually at a TATA Steel mill in.
