The Hindu : Business : Essar in tie-up with Kobe Steel

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Tuesday, Dec 02, 2008
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Essar in tie-up with Kobe Steel

Special Correspondent

Essar will gain operational technology to manufacture higher quality steel products.

MUMBAI: Kobe Steel, one of Japan’s leading steelmakers and producers of aluminium and copper products, and Essar Steel, have signed an agreement through which Essar will gain operational technology to manufacture higher quality steel products. The agreement envisages supplying certain resources to Kobe such as slabs and other raw materials.

The umbrella agreement will encompass quality control and production for steel, technological improvements in the steel plant and its operation, pollution control and energy consumption control at steel works and product improvement for automotive steel, Essar Steel said.

“This agreement will further strengthen Essar Steel’s product portfolio to enable it to produce steel for high-end applications in the auto segment besides other technical guidance in certain areas. In addition, it opens the possibilities of working on joint projects in future,” Essar Steel CEO (India) Dilip Oommen said.

“The agreement provides the framework for our two companies to discuss areas of cooperation,” said Mr. Koichi Onishi of Kobe Steel.

In February, Kobe Steel agreed to provide Essar with technical guidance on the production and quality control of automotive steel sheets as well as facility diagnosis. Both companies saw the value of deepening their relationship, which consequently led to the formation of umbrella agreement. The statement said capital tie-ups between the two companies are neither planned nor foreseen in the future.

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