Japanese steelmaker Sumitomo Corporation has announced that it has signed a basic agreement with Indian steelmaker Mukand Limited to acquire 49 percent of the shares of Mukand Alloy Steels Private Limited (MASPL), a subsidiary of Mukand that manufactures specialty rolled steel. Under the agreement, MASPL will process semi-finished specialty steel products supplied exclusively to the company by Mukand from its plant in Hospet in the southern Indian state of Karnataka, and sell the processed products.
According to Sumitomo Corporation, this new investment in the specialty rolled steel manufacturer is a step that will strengthen its supply chain function in India, with a view to meeting the expected increase in demand for specialty steel driven by the expanding regional automobile market and increasing local sourcing of materials.
Meanwhile, Sumitomo Corporation and Mukand had jointly established Mukand Sumi Metal Processing Ltd. in 2012, to launch the manufacturing and sales of secondary processed specialty steel and stainless steel products in India.