SAIL, Arcelor Mittal ironing out kinks for $1 bn JV
Indicating that differences between state-run Steel Authority of India Ltd (SAIL) and world’s largest steel company ArcelorMittal SA for setting up an automotive steel unit have been resolved, India’s steel minister Chaudhary Birender Singh said the joint venture between the two companies may be signed within next 2-3 weeks. Singh was speaking at the launch of InfraCircle in New Delhi. InfraCircle on 29 September reported the proposed $1 billion automotive steel plant joint venture (JV) between ArcelorMittal SA and SAIL was facing problems due to various financial issues. “There are some differences regarding pricing and all, but I think most of the things have been narrowed down to a great extent, and I am hopeful that if all goes well, then we will have a JV, which is to be signed. And I hope, it may be signed within next 2-3 weeks,” said Singh.
The two companies signed a memorandum of understanding (MoU) in May 2015 to explore the possibility of setting up an automotive steel manufacturing facility in India. The minister further added that negotiations were still on and both SAIL and ArcelorMittal are keen to clinch the issue by the end of December.