Sumitomo Pipe & Tube Co Ltd and Sumitomo Corporation announced that they have reached an agreement with Hyundai Hysco Co Ltd of South Korea to establish a joint manufacturing and sales venture in India for automotive steel pipe.

Profile of the Joint Venture

Name: Automotive Steel Pipe India Private Limited
Address: Chennai, Tamil Nadu State

Business description: Manufacturing and sales of automotive steel pipe

Capital: Approximately INR 400 million (JPY 700 million)
Investment amount: Approximately INR 2 billion (JPY 3.6 billion)

Shareholder composition:
Hysco Steel India Private Limited 55% (100% by Hysco)
SPT & SC Investment Co Ltd 45% (74.8% by Sumitomo Pipe & Tube and 25.2% by Sumitomo Corp)

Main facilities:
2 electric resistance welded tube mills
2 draw benches
1 heat treating furnace
3 quenching machines and other equipment

Production items:
Electric resistance welded pipe (carbon steel, stainless steel)
Cold drawn steel pipe

Production capacity: Approximately 4,000 tonnes per month

Number of employees: Approximately 350

Land area: 51,600 square meters

Factory area: 25,800 square meters

Establishment date: August 2011 (scheduled)

Production starts: End of 2012 (scheduled)

India's automotive industry is expanding rapidly thanks to the strong economic growth. With this, demand for automotive steel pipe is expected to expand, with significant growth particularly anticipated for stainless steel exhaust pipes, steel pipes for front forks, door impact beams and other high strength steel pipes as a result of tighter environmental restrictions and the growing demand for safety enhancements.

The joint venture plans to start manufacturing at the end of 2012, targeting Japanese automobile manufacturers, Hyundai Motor Company, the largest automobile manufacture in South Korea, and European and American automobile manufacturers.