Jaipur: Nippon Pipe India Private Ltd, part of the Japan-based Nippon group, will set up a Rs55-crore steel tube components project for automobile and motorcycles at Majrakath in Alwar district of Rajasthan.
The project will be set up by 2011 in the Japanese zone developed by the state government undertaking Rajasthan State Industrial Development and Investment Corporation at Majrakath, Neemrana. It is the first such project by Nippon subsidiary in India.
Nippon Pipe is a subsidiary of Siam Nippon Steel Pipe Company India, Thailand, which itself is a subsidiary of Nippon Steel in Japan.
The project has been allotted 25 acres of land by RIICO
. A cheque of Rs3.49 crore was presented today to the RIICO’s managing director Rajendra Bhanawat by the President of Siam Nippon Steel Pipe Company Teruhisa Takamoto as 25 % of the cost of land.
Bhanawat today said: “The project will be set-up at a cost of around Rs55 crore in 2011, the cost of which will go up to around Rs190 crore by 2015.
“The annual installed capacity of the project will be 10,000 tonnes in 2012, which will go up to 25,000 tonnes in 2015.”
The delegation of the company had detailed discussions about the project with the managing director and other senior officers of RIICO.
The company said that at its full capacity the project will employ around 280 persons; initially being 62 employees.
In the Neemrana’s Japanese zone 22 companies (including Nippon) have been allotted 303 acres land and an investment of around Rs2,150 crore have been tied up in this zone.
It is the second largest steel company in the world, being next only to Arcelor Mittal Steel, he said.