Under the three year agreement, Vardhman Special Steel’s crude steel production capacity will increase by 8% from its current level, reaching 270,000 tons annually. The project will focus on improving production quality in India and boosting both domestic and overseas sales.
The signing ceremony took place at a hotel in Nagoya, attended by Presidents Goto and Jain. The collaboration began in August 2019 with the first technical support agreement, under which Aichi Steel invested in approximately 11% of Vardhman’s exported shares. A second agreement was signed in September 2022, aiming to upgrade steel quality suitable for Japanese automobiles and expand presence in Southeast Asia.
In January 2023, Vardhman started supplying steel to forging bases in the ASEAN region, including Thailand and Indonesia. In June this year, Aichi Steel increased its stake in Vardhman from 11% to 24%, making the company an equity-method affiliate and deepening the partnership.
The third technical support agreement will focus on developing the Indian market, enhancing product quality, and expanding the product range. Crude steel production capacity will reach 270,000 tons annually, a 50% increase compared with FY2018. In addition, business development activities will be accelerated to meet rising demand from the automotive and motorcycle sectors in India and the ASEAN region.
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