ET reported that some of the Indian stainless steel companies are planning to form strategic tie ups with global majors such as ArcelorMittal and ThyssenKrupp to access new markets, instead of bidding for these large units which will be expensive.

Mr Arvind Parakh finance director at Jindal Stainless said that "This is the trend happening globally. It would be beneficial to get high value markets in Europe and the US."

Mr Yatinder Pal Suri country head of Outokumpu India said that "It is good to be focused. Carbon steel and stainless steel need separate attention. This will bring a healthy dose of competition. Companies, too, will be far more responsible in pricing and in their approach to market. Stainless steel is a high priced product and requires discipline in inventory control and stocks."

German major ThyssenKrupp said that it will spin off its stainless steel unit to focus on carbon steel. The move follows a similar move by ArcelorMittal in January where its stainless steel division Aperam was demerged. Both companies cited overcapacities in stainless steel industry in Europe and Asia as the main driver for consolidation.

(Sourced from Economic Times)