ArcelorMittal and the Steel Authority of India Limited (SAIL) signed a Memorandum of Understanding (MoU) to set up an automotive steel manufacturing facility under a Joint Venture (JV) arrangement in India.
The MoU was signed in London by Lakshmi Mittal, chairperson and CEO of ArcelorMittal, and C S Verma, chairperson of SAIL. Rakesh Singh, Secretary to the Government of India, Ministry of Steel and Aditya Mittal, ArcelorMittal CFO and CEO ArcelorMittal Europe, were also present.
Photo courtesy of ArcelorMittal
The proposed JV will construct a state-of-the-art cold rolling mill and other downstream finishing facilities in India that will offer technologically advanced steel products to India’s rapidly growing automotive sector.
The combination of significant demand growth and limitations in India’s existing domestic automotive steel production capabilities provides a compelling opportunity for both ArcelorMittal and SAIL. In the coming months, a working group with representatives from both companies will work on evaluating a structure for the proposed JV and carry out feasibility studies as part of a comprehensive due diligence process.
