India is the most promising market, according to Nippon Steel & Sumitomo Metal Corp. The company wants to become an 'insider', claims a report by Reuters, in order to capitalise on what the Japanese steel giant views as the world's third-biggest steel market.
Trade and distribution issues, however, make it imperative that NSSMC becomes a so-called insider and that, claims NSSMC's executive vice president in an interview with Reuters, is why the Japanese steel company is bidding for Essar Steel.
Katsuhiro Miyamoto said he expects a decision at the end of the month.
NSSMC has joined forces with ArcelorMittal and is bidding around US$6 billion for Essar Steel, India's fourth biggest, but sadly bankrupt, steelmaker.
According to Miyamoto, buying Essar Steel will give NSSMC and ArcelorMittal (the world's largest steelmaker) access to India's general steel users, including builders.
NSSMC is stepping up its global expansion plans and intends to spend around 600 billion yen (US$5.4 billion) on business investment over the next three years.
Source: dailystar.net and Reuters