The world's leading steel and mining company
ArcelorMittal and
India's leading steel company Steel Authority of
India Limited (
SAIL) have signed a memorandum of understanding (MOU) to set up an automotive steel manufacturing facility under a joint venture in
India, according to
ArcelorMittal.
ArcelorMittal said that the MOU is the first step of a process to establish a JV between the two companies. The proposed JV will construct a state-of-the-art cold rolling mill and other downstream finishing facilities in
India that will offer technologically advanced steel products to
India's rapidly growing automotive sector.
"
SAIL is on the verge of completing a comprehensive modernization and expansion program to increase its hot metal capacity from 14 million mt, with a quantum jump in production of value-added steels. Product enrichment is an integral part of this plan and the MoU with
ArcelorMittal will pave the way for a new chapter in the indigenous production of high quality automotive steel in
India. It will also aid a broader effort by
SAIL to help fulfill the high quality steel requirements of the rapidly growing infrastructure and manufacturing sectors in
India," said
SAIL chairman C. S. Verma.