New Delhi: The Ruia group-promoted Essar Steel said on 1 December it has joined hands with Japan’s Kobe Steel for technical assistance to strengthen its high-end product mix for the automobile sector.

Announcing an umbrella agreement with the Japanese firm, Essar Steel said it will gain operational technology from Kobe Steel to manufacture superior quality steel products.

The agreement also envisages supplying certain resources like slabs and raw materials to Kobe Steel, a statement from Essar Steel said.

Essar Steel India CEO Dilip Oommen said the partnership will strengthen company’s products portfolio and enable it to produce steel for high-end applications in auto segment besides other technical guidance in certain areas.

“In addition, it opens the possibilities of working on joint projects in future,” he said.

Under the agreement, Essar Steel will receive technical assistance from the Japanese company for quality control, pollution check and energy efficiency at its steel works. Kobe Steel will also help the Indian conglomerate improve the quality of automotive steel.

In February this year, Kobe Steel had agreed to provide technical guidance to Essar Steel on production and quality control of automotive steel sheet.

Though the two companies have inked a pact for technology support, they have ruled out any capital tie-up in future.

“Capital tie-ups between Kobe Steel and Essar are neither planned nor foreseen in the future,” the statement said.