Essar, Japan's Kobe Steel in JV for tech support

Essar Steel today announced its partnership with Japan-based Kobe Steel for technical assistance to strengthen its high-end product mix for the automobile sector.

This agreement envisages supplying certain resources like slabs and raw materials to Kobe Steel.

In February 2008, Kobe Steel had agreed to provide Essar with technical guidance on the production and quality control of automotive steel sheet, as well as facility diagnosis.

Commenting on the agreement, Dilip Oommen, CEO (India), Essar Steel: “This agreement will further strengthen Essar Steel’s product portfolio to enable it to produce steel for high end applications in auto segment besides other technical guidance in certain areas. In addition, it opens the possibilities of working on joint projects in future.”

Further, Koichi Onishi of Kobe Steel said: "The agreement provides the framework for our two companies to discuss areas of cooperation."

"It creates a win-win collaborative relationship to provide both Kobe Steel and Essar with mutual benefits," he added.

However, the company has ruled out any capital tie-ups between Essar Steel and Kobe Steel.