ET reported that deadly earthquake in Japan could likely push steel companies from that country to speed up plans to build manufacturing presences in safer and low cost countries such as India.
The report quoted some industry executives who have collaborated with Japanese steelmakers for joint ventures as highlighting this possibility.
Mr CS Verma chairman of SAIL, which has a tie up with Kobe Steel to use low grade iron ore for steelmaking, said that “It is too early to say anything, but definitely, Japanese companies should explore the idea of having larger manufacturing plants in India as we have the market as well as resources here.
Apart from a safety perspective, the strong steel demand pattern in India can be attractive for the technologically advanced country like Japan, which has established its supremacy in making high tensile sheets for car bodies and for use in consumer goods.
Japan’s top four steelmakers Nippon Steel, JFE Steel, Sumitomo Metals and Kobe Steel already have a presence in India through joint ventures.
The earthquake and tsunami has affected major steelmakers along Japan’s Pacific coast. The coke oven gas plant at JFE Steel’s Chiba works caught fire. The integrated works in raw materials yards on Tokyo Bay such as Nippon Steel’s Kimitsu works and JFE Steel’s Chiba and Keihin works have also been affected. The most affected region, Sendai city itself is home to JFE Bars & Shapes and Itoh Steel.
The report quoted some industry executives who have collaborated with Japanese steelmakers for joint ventures as highlighting this possibility.
Mr CS Verma chairman of SAIL, which has a tie up with Kobe Steel to use low grade iron ore for steelmaking, said that “It is too early to say anything, but definitely, Japanese companies should explore the idea of having larger manufacturing plants in India as we have the market as well as resources here.
Apart from a safety perspective, the strong steel demand pattern in India can be attractive for the technologically advanced country like Japan, which has established its supremacy in making high tensile sheets for car bodies and for use in consumer goods.
Japan’s top four steelmakers Nippon Steel, JFE Steel, Sumitomo Metals and Kobe Steel already have a presence in India through joint ventures.
The earthquake and tsunami has affected major steelmakers along Japan’s Pacific coast. The coke oven gas plant at JFE Steel’s Chiba works caught fire. The integrated works in raw materials yards on Tokyo Bay such as Nippon Steel’s Kimitsu works and JFE Steel’s Chiba and Keihin works have also been affected. The most affected region, Sendai city itself is home to JFE Bars & Shapes and Itoh Steel.
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