SAIL, ArcelorMittal ink MoU to set up steel plant in India
Steel Authority of India (SAIL) and world’s largest steelmaker, ArcelorMittal signed a MoU to set up an automotive steel manufacturing facility in India.
The MoU was signed by ArcelorMittal Chairman & Chief Executive Lakshmi Niwas Mittal and SAIL Chairman CS Verma in London.
Under the MoU, the project will be set up through a joint venture involving both parties. Under this project a state-of-the-art cold rolling mill and other downstream finishing facilities will be constructed in India.
These facilities will offer technologically advanced steel products to India’s rapidly growing automotive sector. However in the MoU the location and size of the plant is not decided.
By tying up with ArcelorMittal, SAIL will get an advantage in the indigenous production of high-quality automotive steel. It will also broader SAIL’s effort in order to fulfill the high-quality steel requirements of the rapidly growing infrastructure and manufacturing sectors in India.
It should be noted that NRI billionaire Laxmi N Mittal-led ArcelorMittal, is world’s leading steel supplier company to the global automotive sector. It has global market share of approximately 17%.
In 2014, the company had shipped over 13 mt steel to automotive customers globally in 2014 with in revenues in excess of US 12 billion dollars.
Categories: Business & Economy Current Affairs 2017