China Steel joins a US$24m automotive venture in India

By Camaron Kao  /  Staff reporter

Tue, Nov 19, 2013 - Page 13

China Steel Corp (CSC, 中鋼), the nation’s only integrated steelmaker, yesterday said it has entered a joint venture of US$24 million with Mitsui & Co (Asia-Pacific) Pte Ltd and Mahindra Intertrade Ltd to build an automotive steel service center in India.

China Steel subsidiary China Steel Global Trading Corp (中貿) and Mitsui & Co will each have a 24.5 percent stake in the venture, while India’s Mahindra Intertrade will own the remaining 51 percent, Mahindra Intertrade said.

The facility will have an annual processing capacity of 130,000 tonnes to service car companies in Pune in Maharashtra State, after it begins operations in the fourth quarter of 2015, Mahindra Intertrade said in its press release.

The raw materials for the facility would be imported from China Steel, as well as sourced locally, the Indian company said.

The project targets the growing automobile market in India, where annual car sales are expected to reach 1.5 million units in 2015, China Steel said.

The joint venture is the second project for China Steel in India after the company invested US$66.58 million to build a plant producing 200,000 tonnes of non-oriented electrical steel sheets per year, in the Bharuch district of India’s Gujarat State. It will be operational next year.

China Steel reported revenue of NT$290.11 billion in the first 10 months, down 3.98 percent year-on-year, while its profit jumped 227 percent to NT$12.46 billion, or NT$0.82 per share, in the first three quarters from last year, the company’s data showed.