Mahindra Auto Steel opens processing unit in Maha

Mahindra Auto Steel, a subsidiary of Mahindra Intertrade, today announced the commencement of operations of its Rs 110-crore automotive steel processing joint venture facility at Chakan, near Pune. "We have set up a state-of-the-art steel processing facility as a joint venture with China Steel Global Trading Corporation of Taiwan and Mitsui & Co (Asia Pacific) Pte Ltd, Singapore. Mahindra Intertrade holds 51 percent in the JV, the other partners hold 24.5 percent each," Mahindra Intertrade managing director Harsh Kumar told reporters here.

"The facility, which commenced operations last week, has been set up at a cost of Rs 110 crore (USD 17 million) in phase I with an annual processing capacity of 100,000 tonnes. This will be increased up to 200,000 tonnes in the next three years period. With this centre we are trying to re-engineer the steel supply chain model, which is prevalent and followed internationally," Kumar said.

This is Mahindra's seventh steel processing facility and the third in the Pune region. The raw stock for the facility would be imported from China Steel Global, Taiwan as well as sourced locally. "The world-class facility located in the automotive hub of Chakan and backed by the highest quality steel from our partners, would help redefine the automotive steel supply chain model in the region," Kumar said.

The company is also looking at setting up similar facilities in auto hubs like Chennai and Sanand in Gujarat, he added. MASL hopes to register a turnover of Rs 400 crore by 2018, once the company reaches at its peak capacity. The JV partner, China Steel Corporation Group has been at the helm of developing high-end steel products such as automotive steel since 1995.

"Through our strategic alliance with Mahindra Intertrade and Mitsui & Co, we are confident of providing manufacturers in India with the highest quality products and services, and in turn contribute towards this rapidly developing industry," China Steel Global Managing Director Yi-Jen Kuo said.