Sumitomo Pipe & Tube and Sumitomo Corporation announced on Friday they and South Korean largest pipe maker, Hyundai Hysco agreed to establish automotive steel pipe making joint venture in India. They build welded pipe plant with monthly 4,000 tonnes of output capacity in Chennai, Tamil Nadu for around 2 billion rupee starting operation by end of 2012. The plant is 7th offshore plant for Sumitomo Pipe & Tube after plants in USA, China, Thailand and Indonesia.They establish the joint venture, Automotive Steel Pipe India with around 400 million rupee of capital in August. Hyundai Hysco’s Indian subsidiary, Hysco Steel India controls 55% of the joint venture with 45% share by Japanese joint company, in which Sumitomo Pipe & Tube has 74.8% share and Sumitomo Corp. has 25.2% share. The joint venture builds plant with 25,800 square meters of space on 51,600 square meters of land. The plant starts operation with 2 electric resistance welded tube mills, 2 draw benches, a heat treating furnace and 3 quenching machines and 350 employees. The plant makes carbon and stainless steel welded pipe and cold drawn pipe to supply transplants of Japanese and European automakers and Hyundai Motor’s local plant. The joint venture is the first cooperation between Sumitomo Pipe & Tube and Hyundai Hysco, in which JFE Steel has 12.98% share. They try to develop high grade steel pipe market in India by sharing the risk. Automotive pipe demand increases for high strength products including stainless exhaust pipe, front fork pipe and door impact beam pipe when Indian automakers make environmental friendly car with better safety.
LME Settlement prices05/22/2013
Japan Steel Scrap Composite Prices (Sangyo Press)05/10/2013
|22100YEN (-200)||25300YEN (-200)|
|US$216.75 (-1.96)||US$248.14 (-1.96)|
* Average of Tokyo, Osaka and Nagoya prices
* What is Japan Steel Scrap Composite Prices