According to the recent news in the market, Shangai
Baosteel Engineering & Equipment, a division of
Baosteel Group, has negotiated with
Tata Steel to form a strategic alliance that may result in a joint venture.
In line with the alliance,
Baosteel will supply equipment to
Tata Steel and in response to it,
Tata Steel will supply
iron ore to
Baosteel Group.
The officials of
Tata Steel state that the company plans to increase its
production by 1 million tons in the first phase. Later on, the company will seek for different ways to add 2 million tons to its
production. This alliance will also enable
Tata Steel to serve Chinese, Indian, Korean and Japanese markets, as included in
Tata Steel plans.