Recently, Japanese special steel manufacturer Aichi Steel Co., Ltd. and India Vardhman Special Steel Co., Ltd. signed a $7 million agreement at a ceremony held in Aichi Prefecture, Japan. Vardhman Special Steel announced a new partnership with Aichi Steel Japan, a subsidiary of Toyota Motor Corporation of Japan. Aichi Steel will purchase approximately 11.4% of Vardhman Special Steel and provide technical assistance.
The company will be able to supply steel for critical and specific applications in today’s and tomorrow’s automotive industries. Aichi Steel will send three people to India and will continue to provide additional key support from the headquarters. The complementary product portfolio of management, products, technology and services provided by Aichi Steel provide end users with special steels with years of expertise and proven technical support. This will help Vardhman Special Steel expand its size and market in the coming years.
Vardhman Special Steel Vice Chairman and MD Sachit Jain said, “One of the key objectives of our cooperation is to develop special steel grades for Indian car companies to help fill the gaps in the steel substitutes currently being imported. We plan to do this later. A special grade of steel is exported to South Asia and Europe.”
Takahiro Fujioka, President of Aichi, said, “This partnership will help Aichi Steel to improve its quality and cost competitiveness on a global scale, thereby strengthening the foundation of its special steel business. Friends who are in need are indeed friends, Vardhman Special Steel Team is our friend who will support the development of technology-based solutions in the next few years.”
This move by Vardhman Special Steel was carried out after intensive consultations with the Indian Ministry of Steel and hopes to work on the “Made in India” platform, a large-scale project by Indian Prime Minister Narendra Modi. This joint project of Vardhman Special Steel and Aichi Steel will also increase the employment market and promote the development of the South Asian steel industry in the next few years.