JFE Steel to Start Automotive Steel Sheet Supply by JSW Steel in India

JFE Steel, Japanese major steel maker, will start supply of cold rolled steel sheet to Japanese automakers’ plants in India through JSW Steel, Indian major steel maker, within this year. JFE Steel has provided technical support for automotive steel sheet manufacturing to JSW Steel. JFE Steel examines wider technical assistance for non-directional electric steel sheet as well as investment in JSW Steel’s new steel plant in West Bengal. JFE Steel aims to accelerate business deployment in India by deeper collaboration with JSW Steel.

JFE Steel has supplied hot coil to JSW Steel since late 2010 and implemented test production of automotive cold rolled sheet. Mr. Eiji Hayashida, president of JFE Steel, said JFE Steel completes necessary technical transfer to JSW Steel within fiscal 2011 ending in March 2012 and starts local supply to Japanese users.

In July 2010, JFE Steel and JSW Steel announced conclusion of capital and technical alliances. The main purpose was technical transfer of automotive steel sheet and technical assistance for JSW Steel’s existing steel plants. JSW Steel has supplied steel sheet to Indian local automakers while aimed to follow the demand growth from Japanese automakers’ Indian plants. JSW Steel tries to enhance product quality and supply power of high grade steel sheet through technical cooperation with JFE Steel.

Meanwhile, domestic demand for electric steel sheet is also increasing along with economic development in India. JFE Steel examines technical transfer of non-directional electric sheet mainly used for home appliances to JSW Steel.

JSW Steel will start a new blast furnace in Vijayanagar iron works in May 2011 and increase crude steel output capacity to 10 million tonnes per year. Furthermore, JSW Steel plans to construct another steel plant with the capacity at 10 million tonnes in West Bengal. JFE Steel eyes investment in JSW’s new steel plant and establishment of integrated steel supply system in India.

However, JSW Steel recently acquired Ispat Industries, Indian middle-class steel maker, and may take precedence to integration with Ispat over construction of the new steel plant.