ArcelorMittal, SAIL Enter Pact to Form Autos Steel JV in India
May 22 2015 - 9:29AM
Dow Jones News
By Alex MacDonald
LONDON--ArcelorMittal (MT) said Friday it has signed a
preliminary agreement with state-owned Steel Authority of India Ltd
to create a automotive-steel joint venture in India that would take
advantage of burgeoning demand for cars and trucks.
ArcelorMittal, the world's largest steelmaker by shipments,
signed a memorandum of understanding with SAIL to build a cold
rolling mill and other finishing facilities that would use the
steel titan's advanced technology to sell steel products to India's
rapidly growing automotive sector.
India is forecast to become the world's fourth-largest
automobile-manufacturing nation by 2020, with output growing from
approximately 3.5 million units to more than 7 million units by the
end of the decade. But a bloated bureaucracy and significant
hurdles over purchasing land and regulation have deterred some
foreign companies from investment.
Write to Alex MacDonald at alex.macdonald@wsj.com
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