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ArcelorMittal joins hand with SAIL to make auto steel in India

The international leading steel maker, ArcelorMittal, signed an agreement with Steel Authority of India Ltd (SAIL) to set up an automotive steel manufacturing facility in India, under a joint venture (JV). This would be the first greenfield investment by the LN Mittal group in India’s steel sector.

ArcelorMittal, which scrapped plans to build a 12 million metric ton a year project in India’s Odisha state, plans to achieve a wider footprint in India through this venture, while Steel Authority plans to boost profits by adding high-margin auto-grade steel products. Local manufacturing of such products will reduce India’s dependence on imports from companies including ArcelorMittal and South Korea’s Posco.

 

Steel Secretary Rakesh Singh said: “Increasing the availability of indigenously produced automotive steel would reduce India’s reliance on imports and provide the Indian steel industry and the automotive industry with a sustainable competitive advantage.” He added that India is expected to grow as a hub for automobile export manufacturing facilities to cater to the international market.

The JV proposal comes at a time when South Korean steel giant POSCO is also in talks with SAIL to set up an integrated steel plant.

Sources: TOI, Business Standard

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