Kobe Steel, Essar Enter Comprehensive Alliance

Kobe Steel announced on Monday the firm signed agreement for comprehensive alliance with Essar Steel of India. Essar sought support to shift higher valued steel products including automotive flat steel while Kobe Steel eyes stable raw materials procurement and future presence in Indian high valued steel market. Kobe Steel provides technical support for Essar’s high valued steel operation eyeing potential Indian operation of high valued steel products including high tensile galvanizing steel for automobile.

They singed the contract for 3 years on November 29. They keep talking for individual cooperation projects. The first step is Kobe Steel’s technical support on quality and production control of sheet and plate, facility and operation in steel works and efficient environment and energy management. Kobe Steel eyes potential procurement of pellet and slab from Essar and joint venture in India.

Kobe Steel will provide the grade up of Essar’s operation when Essar tries to improve the technology level while Essar already can make high tensile steel with 45 kilogram per square millimeters. Kobe Steel expects the licensing of higher tensile steel to Essar could take longer time but the firm expects the joint venture with Essar could be high tensile sheet steel making operation as US continuous galvanizing line joint venture with US Steel.