The fifth largest Japanese steel producer JFE Steel Corporation has expressed its intention to strengthen ties with the third largest Indian steel company JSW Steel Corporation through increased shareholding or by enhancing its presence on JSW Steel's board of directors.
According to accounting rules, if JFE Steel Corp.'s shareholding in JSW exceeds 15 percent or if JFE's presence on the latter's board of directors is increased, JFE will be obliged to disclose the financial results of JSW in its own financial reports.
In 2010, JFE invested $1 billion to purchase 14.9 percent of shares in JSW.
In addition, JFE also plans to participate in the integrated steel mill construction project of JSW in Salboni, India.