JSW Steel and JFE Steel Corporation of Japan has reportedly agreed in-principle to collaborate with each other in India in the area of automotive steel, including production technologies and supply of substrate materials for hot rolled, cold rolled and galvanised products.

JSW along with JFE Steel is planning to produce auto-grade steel at its Vijayanagar plant in Karnataka.

Besides, both the companies are likely to acquire equity stakes in the greenfield projects proposed in West Bengal and Jharkhand.

A core team has been set up to chalk out the ways and means for the collaboration and the investment. The proposed collaboration is expected to help JSW to produce high-grade skin panels, now being imported, for cars and bikes. JSW produces 0.8 million tonne of cold rolled coil for carmakers such as Hyundai, Bajaj Auto, Ashok Leyland, Tata Motors and is in the process of getting approval from Toyota India, Ford India, General Motors India and Maruti Suzuki.

Also See:

Karnataka nod for JSW Steel's Vijayanagar expansion plans (30-Sep-09)