Japan’s Aichi Steel picks 11.4% stake in Vardhman Special Steels
Through this cooperation Vardhman Special Steels will be capable of supplying steel for critical and special applications for automotive industry
Aichi Steel Corp, an affiliate of Japan’s Toyota Motor Corporation, will buy approximately 11.4 per cent stake in Vardhman Special Steels Ltd and provide technical assistance aiming to establish a world class, socially and environmentally responsible special steel company in India. This company will be capable of supplying steel for critical and special applications for today and tomorrows automotive industry. Aichi Steel will be posting three personnel in India while additional critical support from the headquarters will be provided constantly.
Both companies aim to achieve sustainable growth through use of advanced technology leading to enhanced excellence in steel making here in India. The complimentary portfolio of management, product, technology and services offered by Aichi Steel provides the end users with the special steel backed up by years of expertise and recognised technology. This will help Vardhman Special Steels to expand its size and markets in years to come.
“One of our key objectives of this partnership is to develop special steel grades for automotive companies in India so as to help fill the gap of providing substitution of steel that is currently being imported. We plan to later export this special grade of steel to South Asia and Europe as well,” said Sachit Jain, Vice-chairman & MD Vardhman Special Steels Limited.
The two companies signed an agreement on the deal worth $ 7 million in a ceremony held in the last week of August 2019 at Aichi Prefecture, where the Japanese firm is located. “This partnership will help Aichi Steel strengthen the foundation of its special steel business by improving quality and cost competitiveness on a global basis. A friend in need is a friend indeed and Vardhman Special Steels team is a friend who we will be supporting to develop technology based solutions in coming years,” said Takahiro Fujioka, President, Aichi Company.
This initiative of Vardhman Steel has been executed post deep consultations with the Steel Ministry of India and the desire is to work on the platform of Make in India. This joint project of Vardhman Special Steels and Aichi Steel will add to the job market too and give a boost to the steel industry in South Asia in the coming years.