Nisshin Steel Co. will not pursue a plan to manufacture stainless steel in India, because the demand for high-grade components in furniture and electronics is unlikely to grow as fast as expected there. Nisshin Steel’s probable joint venture partner, Spain-based Acerinox SA, also agreed to shelve the plan. Instead Nishin Steel and Acerinox will jointly build a new factory in Malaysia that will also supply the Indian market. With demand growing in SE Asia for automobiles, electronics and building materials, the two companies had already agreed in March to construct the Malaysian plant and start operation by 2011. The new plant will produce about 240,000tns of cold rolled steel plate each year.
