Thursday, January 10, 2008

Arcelor Mittal to Supply Automakers in Russia:

President Akio Mimura said Thursday Arcelor Mittal SA of Luxemburg will supply steel sheet and other steel products to Japanese automakers starting operations in Russia.
"It is natural that Arcelor Mittal, to which Nippon Steel gives technical assistance, supplies steel products to Japanese automakers operating in Russia," Mimura said in an interview.
The world's major automakers are scrambling to launch production in Russia, where auto demand is rapidly increasing amid economic boom backed by surging energy prices.
Among Japanese automakers, Toyota Motor Corp. launched production at its plant in the suburbs of St. Petersburg in December, eyeing an increase in output to an annual 200,000 to 300,000 units as early as 2010. Nissan Motor Co., Suzuki Motor Corp. <7269> and Isuzu Motors Ltd. are set to follow suit.
Mimura said that shipping steel products from Japan is not economically feasible. "We will leave it to Arcelor Mittal for the time being," he said.
Mimura also indicated that Nippon Steel has no intention of starting producing steel products in Russia, even by setting up a joint venture firm.

Link to full story at JCNnetwork

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