The steel tube components project will come up at the Japanese Zone
Nippon Pipe India Pvt. Ltd. of the Nippon group will set up a steel tube components project for automobiles and motorcycles in the Japanese Zone at Majrakath in Neemrana in Rajasthan. This is the first such project by a Nippon subsidiary in India.
Nippon Pipe is a subsidiary of Siam Nippon Steel Pipe Company India Ltd., Thailand, which, in turn, is a subsidiary of Nippon Steel of Japan.
The Japanese Zone has been developed by the Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO).
The project has been allotted 25 acres by RIICO. A cheque of Rs.3.49 crore was presented to RIICO Managing Director Rajendra Bhanawat on Thursday by Siam Nippon Steel Pipe Company President Teruhisa Takamoto, as 25 per cent of the cost of land. Senior company officials had detailed discussions on the project during the meeting with the Managing Director and other RIICO officers.
Mr. Bhanawat said the project would be set up in 2011 at a cost of around Rs.55 crore. The investment would go up to around Rs.190 crore by 2015.
The annual installed capacity of the unit would be 10,000 tonnes in 2012, which would increase to 25,000 tonnes in 2015. In the Neemrana's Japanese Zone, 22 companies (including Nippon) have been allotted 303 acres.