India emerging as hub for automotive steel

India may soon emerge as a hub for high-value automotive steel manufacturing. The joint venture of Tata Steel and Nippon Steel is a recent effort in this direction. The two partners are planning to set up a continuous annealing and processing line (CAPL) with a capacity of 6 lakh tons. Nippon Steel will transfer its technology for producing high-grade CR steel sheet for automotive application, including skin panels and high-tensile steels. The two companies will partner with JSW Steel and Bhushan Steel respectively to acquire a production base for auto steel in India. A major factor leading to Japanese interest in making auto-grade steel in India is the thrust on small cars. By 2010-11, India is set to produce 2 million cars annually. (May 28, 2010)