Daido Steel to Provide Technical Support for Indian Special Steel Maker

Daido Steel announced on Monday the firm signed technical support agreement with Sunflag Iron & Steel of India on November 4 to provide support in evaluation of capital expenditure and special products. Daido Steel also provides technical consulting in facility engineering. They try to seek growth opportunity through the partnership in technology in capital expenditure and products evaluation at the first stage eyeing another step for the alliance.

Sunflag Iron & Steel studies mid-term growth plan including major capital expenditure to follow growing demand in Indian automobile industry. The firm tries to improve the quality and competitiveness level with technical support by offshore maker for further growth.

Indian special steel demand is around 4 million tonnes per year with expanding demand for motorcycle, automobile and infrastructure in the country. The demand also increases for export to Europe and Asia.

Daido Steel tries to expand the offshore business especially in emerging countries by developing new market to expand the sales and growth opportunity. The firm tries to establish solid base in India through alliance with major local partner.

Sunflag Iron & Steel makes annual 310,000 tonnes of rolled special steel products. The firm with around 2,140 of employees posted around 2.6 billion yen of after tax profit with around 27 billion yen of sales.