Posted on 29 Jul 2010
JFE Steel to take stake in India's JSW Steel
JFE Steel Corp. said Tuesday it will acquire a 14.99 percent stake in India’s major steelmaker JSW Steel Ltd. for 48 billion rupees (about 90 billion yen). JFE Steel, which forged a comprehensive alliance with JSW Steel in November 2009, will build up their business ties to meet growing demand in India.
In India, the demand for high-grade steel to make automobiles is sharply increasing. JFE apparently aims to supply steel to Japanese automakers and home appliance makers which are increasing local production in India. JFE’s rival Nippon Steel Corp. is also planning to set up a joint venture with India’s Tata Steel Ltd. to produce steel for automobiles.
