Vardhman Steels inks deal with Japanese firm to boost production

Vardhman Special Steels Limited (VSSL), signed an agreement with Aichi Steel Corporation, Japan, on Tuesday, marking a significant milestone in their strategic partnership.

At a ceremonial event held here, Sachit Jain, Vice Chairman and Managing Director of VSSL, and Naohide Goto, President of Aichi Steel Corporation, signed the agreement, under which Aichi Steel has increased its equity stake in VSSL from 11.33 per cent to 24.90 per cent.

They said the investment represented the long-standing relationship between the two companies and underscored Aichi Steel’s growing confidence in VSSL and the Indian steel market. Representatives of both companies said the enhanced partnership was aligned with the shared vision of developing a world-class green steel manufacturing facility in India, aimed at producing high-quality special steels for the global automotive and engineering industries.

The upcoming plant, with a manufacturing capacity of 5 lakh TPA and an estimated capex of Rs 2,000 crore, will integrate advanced Japanese processes and technology to serve both domestic and ASEAN markets.

Sachit Jain said, “Aichi Steel Corporation’s increased investment highlights our shared vision for long-term growth and a sustainable future, reaffirming their trust in VSSL. We remain focused on disciplined execution, backed by strong governance and a commitment to quality, safety and sustainability. This long-term partnership is set to create a world-class special steel plant in India to make green steel for the world, our contribution towards the Prime Minister’s “Make in India” initiative.”

Naohide Goto said, “Today, we signed an agreement for additional investment. This means Vardhman Steel and Aichi Steel have taken a new step as affiliated companies. Both companies are steel makers that hold a big advantage in lower carbon emission because of using electric furnace and in strong scrap distribution networks. In addition, Vardhman Steel also has advanced processes that use green energy and we believe that it can make a significant contribution to customers seeking “green products”. We will strengthen our collaboration further, support our customers’ local procurement by delivering high-quality, low-cost, environmentally friendly steel products in a timely manner and contribute to the development of a prosperous and sustainable Indian society.” The new plant is expected to provide job opportunities to over 2,500-3,000 persons.