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JFE Steel, JSW Steel Take First Step in Strategic Cooperation
Jul. 28, 2010 JFE Steel Corp. and JSW Steel Ltd. have signed agreements for JFE Steel to take an equity position in JSW Steel and to provide the Indian steelmaker with technical assistance. JFE Steel, through this partnership, now expects to participate on a full scale in India.
The companies signed the strategic collaboration agreement on November 19, 2009.
JFE Steel will acquire a stake in JSW Steel by subscribing to a preferential allotment at a cost of 48 billion Indian rupees. The company plans to acquire 14.99% voting rights. Based on JFE Steel’s equity participation, the two companies plan to cooperate in a variety of areas, including JSW Steel’s envisioned West Bengal steel plant project.
JFE Steel also will provide JSW Steel with technical assistance for the production of automotive steel and the implementation of operational improvements at JSW Steel’s Vijayanagar Works.
For automotive steel, JFE Steel will provide technology for the production of hot-rolled and cold-rolled coils, and supply JSW Steel with substrates. The two companies will also jointly provide automotive customers with services including application engineering and product development.
For operational improvements at JSW Steel’s Vijayanagar Works, agreements have been executed for work involving energy efficiency, environmental management, improvement of production process quality and yield, production capacity analysis, and indices benchmarking.