Kobe in talks with Indian firm on steel plant tech

Tokyo, May 23: Kobe Steel Ltd, Japan's fourth-biggest steel maker, said on Wednesday it is in talks with India's Chowgule Group over the use of its steel-making technology.

A Kobe spokesman said the two parties could agree on building a 500,000 tonnes-a-year steel plant using the technology in India, but it was also possible that Kobe would only license the know-how, called the ITmk3 process, that enables the production of high-grade steel from low-priced iron ore and coal.

Japanese business daily Nikkei reported on Wednesday that Kobe plans to begin steel production in India by 2009 through a joint venture with Chowgule, boosting its share price.

Reuters>