Tata Steel plans to enter into an agreement with Japan-based Nippon Steel Corporation (NSC) by January end to set up a Rs 2,400-crore steel plant for auto-grade steel.
The proposed joint venture facility is expected to commence operation in the next two years at Tata Steel's existing unit at Jamshedpur.
“The JV with Nippon will be signed by January this year and we expect to start production from this facility by early 2013,” said HM Nerurkar, managing director, Tata Steel. The facility's initial capacity will be 0.6 million tonne (MT) per year, Nerurkar said.
The JV aims to capture the growing demand for high-tensile auto-grade steel in India. The world’s second-largest steel maker Nippon will transfer its technology for producing auto-grade steel.