Tokyo: Japan’s Kobe Steel Ltd plans to begin steel production in India by 2009 through a joint venture with a local partner, the Nikkei business daily reported on 23 May.
Kobe Steel is talking with India’s Chowgule Group to build a factory in the southwestern state of Goa, with construction likely to start by the end of this year, the newspaper said.
Kobe Steel’s investment in the venture is expected to total 20 billion yen ($165 million, Rs663 crore). Kobe is Japan’s fourth-biggest steel maker after Nippon Steel Corp., JFE Holdings Inc. and Sumitomo Metal Industries Ltd.
The new factory will be able to churn out 500,000 tonne a year. It will employ new technology that enables the production of high-grade steel from cheap iron ore and coal, the newspaper said.
That will enable the new factory to have raw materials costs a third of the level at existing plants, the paper said.