Tata Steel and Japan's Nippon Steel, will form a joint venture to build a Rs2,300 crore automotive cold-rolled steel sheet plant in Jamshedpur aimed at the booming Indian auto industry.
In the yet unnamed JV, Tata Steel would hold a majority with 51-per cent stake while Tokyo-based Nippon, the world's second-largest steel maker, will hold the remaining 49 per cent, the Mumbai-based steel major today said in a filing with the Bombay Stock Exchange.
"The chairman of the joint venture will be nominated by Nippon and the managing director by Tata Steel," the statement added.
The plant will be located inside the Jamshedpur Works and have an initial capacity of 600,000 tonnes a year of auto grade steel with production likely to commence by early 2013.
Tata Steel, India's largest steel maker has been in talks since January 2010 with Nippon to form a JV for the production and sale of high-grade automotive cold-rolled flat products.
The technology for production of high-grade cold-rolled steel sheets for automotive application, including outer panels and high-tensile steel will be Nippon's, which will be licenced to the JV.