As the talks with ArcelorMittal to form auto-grade JV firm is postponed, state-owned SAIL has started talking to other global players, a top company official said.
SAIL is closely working with a few global companies who are into auto-grade steel making, Steel Authority of India Ltd (SAIL) chairman Anil Kumar Chaudhary said.
The country’s largest steel maker and Luxembourg-based ArcelorMittal had entered into an MoU in May 2015 to explore the possibility of setting up an auto-grade steel manufacturing facility under a joint venture in India.
In December 2017, the SAIL board approved the proposal to enter into a joint venture with the world’s largest steelmaker ArcelorMittal for manufacturing high-end automotive steel.
However, definitive agreements in this regard were to be finalised in due course, subject to financial viability.
The talks with ArcelorMittal have been delayed but there are many other companies in the world in the auto-grade steelmaking. SAIL is already in touch with some of the Korean companies POSCO and Hyundai Steel, the chairman told PTI while replying to question related to delay in decision.
There are some Japanese firms as well – like Nippon Steel, Kobe Steel and JFE – with whom SAIL is in talks with, he said, adding that the JV with ArcelorMittal is still on.
Essar Steel is undergoing insolvency proceedings.
PTI had previously reported that steel companies from South Korea and Japan have shown interest to invest in India for manufacturing value-added products. The companies had also visited SAIL and RINL plants.
The steel ministry has also held several rounds of discussions to facilitate manufacturing of high-grade steel in India with the help of foreign companies especially from South Korea and Japan.
He also said if they scarp the JV plan, they are not depended on ArcelorMittal.
Billionaire L N Mittal’s ArcelorMittal, Chaudhary said that while it is very new to India, SAIL has been operating for 60 years now.
ArcelorMittal could be the largest steel making company but they are not the only steel making company in the world, Chaudhary added. Basically, the HR or hot rolled coil will be the input for the cold rolling mill which would be going to establish jointly. So, that kind of input can not come.
Recently, another domestic steel firm Tata Steel could not further its decision of forming a JV with German Steel Major ThyssenKrupp, following the response of the European Commission.
