Contract award for supply of Hot Strip Mill by JSW Steel in India
Marubeni Corporation
Mitsubishi-Hitachi Metals Machinery, Inc.
Jan 29, 2007
Marubeni Corporation (“Marubeni”), jointly with Mitsubishi-Hitachi Metals Machinery, Inc. (“Mitsubishi-Hitachi”), is awarded a contract by JSW Steel Limited, a steel company in private sector in India, for supply of Hot Strip Mill with annual capacity of 3.5 million ton under Phase-I and option to increase the capacity to 5 million ton under Phase II. Phase I is planned for commissioning within 27 months.
The contract price is approximately Japanese Yen 16 billion. Marubeni will be a prime contractor and Mitsubishi-Hitachi will design and supply the mechanical equipments.
JSW Steel Limited, with the steel operation based in Toranagallu, is a core unit of JSW Group, an Indian major conglomerate. Presently, JSW Steel has the annual production capacity of 3.8 million ton crude steel but in order to deal with rapid increase of steel demand, it is implementing the expansion plan to increase annual production up to 6.8 million ton crude steel by 2008.
The rolling equipment to be supplied by Marubeni, as a core facility among such expansion plan, will produce wide range of products including high grade steel sheet for automobile application.
With the competition with European suppliers, the contract was given to Marubeni as a result of JSW’s consideration of Marubeni’s ability to coordinate and promote the project and Mitsubishi-Hitachi’s full engineering capability and rich supply experience.
There are number of mega steel projects planned in India, and Marubeni, with the success of receiving this sizable order, will continue to develop the project in Indian market. Mitsubishi-Hitachi will build the confidence as a top manufacturer promoting the world-leading unique technology such as Pair Cross Mill.
<Company Profile of JSW Steel Limited>
Location: Mumbai, Maharshtra, India
Date of Incorporation: March 1994
Share Capital: US$110 million (Equivalent amount in Rupee)
