For Japanese steel giants, forging alliances with their Indian counterparts to establish their presence here has become a crucial survival tool
By Prince Mathews Thomas, Business.In
Unknown to many, India had a role to play in Japan’s reconstruction in the years after World War II. Indian iron ore fed Japanese steel mills, the backbone for growth in the country’s construction and auto industries. And, till China’s steel industry took off at the turn of the century, more than three-fourth of iron ore exported from India landed in Japan.
Now, Japanese steel companies are setting up shops in India with increasing frequency. By the end of 2010, the top four steel makers from the Land of the Rising Sun — Nippon Steel, JFE Steel, Sumitomo Metals and Kobe Steel — had made their presence in India official. The New Year started with Kobe Steel forming another joint venture, this time with engineering giant Larsen & Toubro in January. Success in India might play a crucial role in keeping these companies profitable. The India focus is part of Japanese steel mills’ attempt to realign themselves as per industry dynamics post the 2008 economic slowdown. While traditional markets such as North America have been replaced by emerging ones in Asia, supply glut, rising costs and dip in home demand has forced Japanese steel companies to look for solutions. To read whole article visit Business.in
By Prince Mathews Thomas, Business.In
Unknown to many, India had a role to play in Japan’s reconstruction in the years after World War II. Indian iron ore fed Japanese steel mills, the backbone for growth in the country’s construction and auto industries. And, till China’s steel industry took off at the turn of the century, more than three-fourth of iron ore exported from India landed in Japan.
Now, Japanese steel companies are setting up shops in India with increasing frequency. By the end of 2010, the top four steel makers from the Land of the Rising Sun — Nippon Steel, JFE Steel, Sumitomo Metals and Kobe Steel — had made their presence in India official. The New Year started with Kobe Steel forming another joint venture, this time with engineering giant Larsen & Toubro in January. Success in India might play a crucial role in keeping these companies profitable. The India focus is part of Japanese steel mills’ attempt to realign themselves as per industry dynamics post the 2008 economic slowdown. While traditional markets such as North America have been replaced by emerging ones in Asia, supply glut, rising costs and dip in home demand has forced Japanese steel companies to look for solutions. To read whole article visit Business.in
Posts
No comments:
Post a Comment