The world's leading steel and mining company ArcelorMittal and India's leading steel company Steel Authority of India Limited (SAIL) have signed a memorandum of understanding (MOU) to set up an automotive steel manufacturing facility under a joint venture in India, according to ArcelorMittal.
ArcelorMittal said that the MOU is the first step of a process to establish a JV between the two companies. The proposed JV will construct a state-of-the-art cold rolling mill and other downstream finishing facilities in India that will offer technologically advanced steel products to India's rapidly growing automotive sector.
"SAIL is on the verge of completing a comprehensive modernization and expansion program to increase its hot metal capacity from 14 million mt, with a quantum jump in production of value-added steels. Product enrichment is an integral part of this plan and the MoU with ArcelorMittal will pave the way for a new chapter in the indigenous production of high quality automotive steel in India. It will also aid a broader effort by SAIL to help fulfill the high quality steel requirements of the rapidly growing infrastructure and manufacturing sectors in India," said SAIL chairman C. S. Verma.