Tata Steel establish joint venture to move bulk cargo in India
NYK Line and India's largest steel producer Tata Steel Ltd., part of the Tata Group, have a established an equal joint venture company to handle dry bulk and breakbulk cargo moving to and from India.
The two companies have contributed $5 million in capital to the new joint venture, which will be headquartered in Singapore, and extends their partnership, which dates back to 1893 with a joint Japan/Bombay service.
'In future Tata Steel would require to transport large quantities of raw materials and finished steels, which necessitates strategic control over logistics. This joint venture is a step in that direction. Besides we see a huge potential for this company in India,' said B. Muthuraman, Tata Steel's managing director.
'The joint venture was established with the aim of meeting the expanding demands for transporting energy and setting up infrastructure in India, where the economy is growing by approximately 8 percent a year,' NYK said in a statement.
'I am so glad to sign this agreement as the opener of next 100 years relationship with Tata. Tata Steel and NYK will expand with India's huge growth potential through this joint venture,' said Hiromitsu Kuramoto, NYK's representative director and senior managing corporate officer.
Tata Steel's main plant is located in Jamshedpur, East India, annually producing five million tons of raw steel with output being expanded to twice that amount. It also has two subsidiaries in Thailand, NatSteel Asia Pte. Ltd. and Millennium Steel Plc. Ltd., between them producing almost 4 million tons of raw steel each year.