Tata Steel to invest $500 mn in its European arm next fiscal

JAMSHEDPUR: Tata Steel today said it will infuse $500 million in its European arm in the next fiscal and asserted that the new year will see its joint venture with Japan's Nippon Steel Corp bearing fruits.

"We are planning to invest $500 million in Corus in next financial year ... the investment will only be for supply chain and managerial efficiency," Tata Steel Managing Director HM Nerurkar told reporters here today.

Besides, the company will ink a pact with Japan's Nippon Steel in January 2011 for a Rs 2,400 crore steel plant, which is likely to start production by February 2013, he said.

"The Nippon JV will happen early January next year and we will start production within 28 months. The JV plans to invest Rs 2,400 crore to manufacture 0.6 million tonne (MT) per year for auto grade steel."

Both Tata Steel and Nippon Steel would be equal partners in the JV.

Nippon, as per information, will transfer its technology for producing high grade cold rolled steel sheet for automotive application, including skin panels and high tensile steels.

On its Rs 15,000-crore capacity expansion project of Jamshedpur plant, Nerurkar said the company's plan to ramp up the production capacity by around 47 per cent to 10 million tonnes per annum (MTPA) is on track and will be completed by November 2011.

"We are very much in line with our expansion programme, which will be completed by October-November next year," Nerurkar said.

The plant, at present, has the capacity to produce 6.8 MT per annum.