Nippon, Tata in talks for steel venture

Nippon Steel, the world’s second-largest steelmaker, has started talks with Tata Steel on the issue of meeting rising demand from companies in India, including carmakers. No details have been finalised yet, Nippon Steel, based in Tokyo, said in a statement today.

According to Japanese media reports, the companies are likely to spend about 50 billion yen ($423 million) to make thin-sheet steel, mainly used in automotive bodies, at a jointly built plant using Nippon’s technology. The plant would be able to produce 1 million metric tonnes of steel a year. In a statement, Nippon Steel said it was considering carrying out studies while monitoring (steel) demand and other factors in the sub-continent.

Nippon Steel and Tata are expected to begin a feasibility study soon to decide on the new plant’s location, size and construction launching date. They plan to start supply of steel sheets to Japanese and other carmakers in India by 2010.