Nisshin Steel, Acerinox to build India plant-paper

TOKYO, May 26 (Reuters) Japan's Nisshin Steel Co. plans to build a stainless steel plant in India with Spanish partner Acerinox for 30-40 billion yen (6-355 million), the Nihon Keizai business daily reported on Friday.

The paper said Nisshin and Acerinox, in which Nisshin holds a 10.9 percent stake, would establish a joint venture as early as next year, and that local firms may join in the project.

The plant, which will produce stainless steel sheets for kitchen equipment and the construction industry, will begin operations in 2008, the newspaper said.

The facility will initially produce 200,000 tonnes a year and is expected to widen its product line to materials for auto parts to supply Japanese auto makers in India, it said.

A Nisshin spokesman could not immediately confirm the report.

The company will be the first Japanese steel maker to enter the Indian market, the paper added.

REUTERS DH RN0536