Domestic steel major Tata Steel has entered into a joint venture agreement with world’s second largest steelmaker Nippon Steel Corp for production and sale of automotive cold-rolled flat products at its Jamshedpur plant by March 2013. The agreement is expected to be finalised by June.
Tata Steel also reported a 155.5 per cent jump in net profit at Rs 1,191 crore for the quarter ended December 31, 2009. Tata Steel is the market leader in the automotive steel production in the country with a 42 per cent share in the 1.9 million tonne per annum capacity.
“Tata Steel will hold 51 per cent and Nippon will have the remaining 49 per cent equity capital in the joint venture company,” the company said in a statement. “Nippon will transfer its technology for producing high grade cold-rolled steel sheet for automotive application, including skin panels and high tensile steels.”
Tata Steel recorded a net profit of Rs 466.2 crore during the same period in 2008. Its net sales grew 32.8 per cent to Rs 6,307 crore against Rs 4,750 crore in 2008. The results do not take into account Tata’s European operations (Corus).