JSW Steel will be sourcing technology

JSW Steel will be sourcing technology This perception must be the reason for SAIL to sign an MoU with Japan’s Kobe Steel to explore the possibility of building a mill here in a joint venture using ITmk3 process of iron making. Building a new mill here on their own is a challenge for which most leading groups abroad do not have the appetite. But who would still not want a foothold in the market here which is emerging as next only to China and the second best option for them is to have alliances with Indian steelmakers.

The alliance with Kobe will hopefully make it possible for SAIL to add greater value in its production chain by making steel for use in automobiles, a nuclear power plant and super critical thermal power plant. The SAIL-Kobe association could also cover special alloy steel and stainless steel tube. But SAIL is not alone in joining hands zongyu with foreign groups to access technologies missing here. Tata Steel has announced a 51:49 JV with Nippon Steel for making high grades of auto cold rolled flat panels. JSW Steel will be sourcing technology from Japan’s JFE Corporation to make skin panels for cars, for which we are now import-dependent.

Verma laments that Indian steel makers are spending a lot less on R&D than in other major producing countries. Meaningful R&D is an expensive proposition. Development of Finex and its commercialisation cost nearly $600 million. Ideally, we need pooling of resources by steel makers under a single umbrella to make a success of R&D. Pending that, let the industry take up the India-oriented R&D agenda recommended by Verma.