Steel majors agree on joint R&D

IN FOCUS / STEEL

Unite or perish. This seemed to be the latest mantra of the domestic steel manufacturers who are gearing up to meet the challenge from east Asian steel giants from Japan, South Korea and China.

Indian steel majors agreed to share research and development data to bring down cost of production and reduce energy consumption.

This would help them resist the onslaught of the Asian steel giants who were working to set up plants in India soon, said sources.

A decision in this regard was unanimously adopted at a seminar on energy conservation in the steel industry held recently.

Nippon Steel of Japan, Posco of South Korea and Bao Steel of China have announced their intention to set up plants in Chhatisgarh and Orissa on a war footing.

Senior steel sector officials admitted that till now, steel research and development work was confined to the company conducting the project.

"Now that giants have decided to set up their units in India, domestic companies are left with no choice but to join hands," a senior official of a private steel major attending the seminar said.

Indian steel majors were already working on cost reduction, he added.

Tata Steel has started energy audit for equipment and processes in alliance with Electrical Research and Development Association (ERDA) to bring down cost of production by reducing energy expenses.

Sources claimed minor modifications in production processes could reduce expenditure on energy by five per cent.

A pilot project in Gujarat had proved this.

"This will help bring the cost of production almost at par with companies like Nippon, Bao or Posco," the source confirmed.