Tata Steel-Nippon Steel & Sumitomo joint venture inaugurates new Rs 2,750 crore auto steel line at Jamshedpur

Jamshedpur: Continuous Annealing and Processing Company Private Limited (JCAPCPL), a 51:49 joint venture between Nippon Steel Corporation & Sumitomo Metal Corporation (NSSMC) of Japan and Tata Steel, inaugurated a new Rs 2,750 crore advanced auto steel facility.

The new facility, the country's first Continuous Annealing & Processing Line (CAPL) for manufacturing 'Automotive Grade Continuous Annealed Products', was inaugurated inside Tata Steel's Jamshedpur Works. The unit will produce 600,000 tonnes per annum of high-quality cold rolled sheets exclusively for the automotive industry, including outer panels and high tensile sheets.

The inauguration of the new unit coincides with the prime minister, Mr Narendra Modi's current visit to Japan and his meeting with his Japanese counterpart, Mr Shinzo Abe.

While Tata Steel has developed the infrastructure for the project, NSSMC has provided the equipment and state-of-the-art technology. The project has been set up at a capital investment of about? 2,750 crores.

JCAPCPL which was formed in early 2012 for producing high-end cold rolled coils and sheets for the Indian automotive market, will source steel from Tata Steel. The latter currently enjoys a 42% share of domestic automotive steels market. Through the joint venture, the two companies hope to cater to the increasing demand of Indian automakers for high-grade, high-quality automotive steel sheets.

A leading global steel producer, NSSMC was established in October 2012 following the merger of Nippon Steel Corporation and Sumitomo Metal Industries.

The latest facility was jointly inaugurated by Cyrus P Mistry, chairman, Tata Sons, and Mr Shoji Muneoka, chairman, Nippon Steel & Sumitomo Metal Corporation (NSSMC). Other officials present at the event included, Mr Koushik Chatterjee, Group Executive Director (Finance and Corporate), Mr Katsuhiko Ota, Representative Director, Executive Vice President, Corporate Planning, Group Company Planning, Finance, NSSMC, Mr Yashumitsu Saeki, managing director, Head of Flat Products Unit, Leader of India CAPL Project, Mr Taisuke Nomura, managing director, Nippon Steel & Sumitomo Metal India Pte. Ltd., Chairman JCAPCPL, Mr Naomi Ishi, managing director, Toyota Kirloskar Motors, Mr P N Singh, President, Tata Workers' Union.

Speaking on the occasion, Mr Cyrus P Mistry, Chairman, Tata Sons said: "This line will produce products that will be a great support to the Indian automobile industry. JCAPCPL will establish high quality levels and production standards that we hope will be path-breaking and record-setting." Mr Shoji Muneoka, chairman, NSSMC said: "JCAPCPL has been established to supply high grade cold rolled steel for the automobile industry. I have no doubt that JACAPCPL will take advantage of strengths of both Tata Steel and Nippon steel and supply steel that will definitely satisfy our customers."

On the occasion, Mr T V Narendran, MD, Tata Steel, India & SEA said: "The relationship between Tata Steel and Nippon Steel goes back 40 years; it's been a technical relation and partnership in many ways which is now translated into a company where the best of both the companies can be reflected." In his address to the gathering, Mr Kazumi Endo, Consul-General of Japan, Kolkata said: "It is in the fitness of things that the JCAPCPL facility is being formally inaugurated on the day when the Indian Prime Minster is meeting his Japanese counter-part in Japan".

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