Vardhman Special Steels India Announces Investment By Aichi Steel
The two companies signed an agreement on the deal worth $7 million in a ceremony held on last week in Aichi Prefecture, where the Japanese firm is located.
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Vardhman Special Steels announces a new partnership with Aichi Steel Japan, an affiliate of Japan’s Toyota Motor Corporation. Aichi Steel Corp will buy approximately 11.4 per cent stake in Vardhman Special Steels and provide technical assistance. 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.
The complementary 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 recognized 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 Mr Sachit Jain, Vice-Chairman & MD Vardhman Special Steels.
The two companies signed an agreement on the deal worth $7 million in a ceremony held on last week in 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,” added President Takahiro Fujioka from Aichi Company in his statement.
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”, which is Prime Minister Narendra Modi’s mega plan for India’s growth. 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.