SAIL in pact with Swiss co to develop high strength steel

Steel Authority of India (SAIL) today announced the signing of a collaborative agreement with CBMM (Companhia Brasileira de Metalurgia e Mineracao of Brazil) Technology Suisse SA, based in Geneva, Switzerland.

Popular for its application in transportation of oil & natural gas, API grades of line pipe steel have a huge market in India with annual demand being estimated to be 1 million tons (MT) in the coming years.

Demand for API X-80 grade steel with superior high strength qualities, is likely to increase sharply. The agreement aims at enhancing SAIL`s (Q,N,C,F)* market share in the special steels segment.

Earlier, too, Research & Development Centre for Iron & Steel (RDCIS) had initiated and successfully completed collaborative programmes with CBMM for development of API X-60 & 70 grade steel plates and HR coils at Bhilai and Bokaro Steel Plants, respectively.

As per the agreement, which carries a tenure of two years, SAIL plans to develop high strength steel of API X-80 specification for line pipe and structural applications. The international demand for API grades of steel is projected at 8 MT per annum, generating a large untapped market for Indian steel producers.

Production of API X-80 from SAIL plants is expected to commence within one year. With CBMM as its ally in this project, SAIL will be able to substantially reduce the development time of its new product, by roping in CBMM`s long-term expertise in the sector. CBMM is a major producer of niobium in the world and supports research collaborations with leading R&D organisations and institutes to promote usage of niobium for development of new products.

Shares of the company declined Rs 3.1, or 1.57%, to trade at Rs 193.80. The total volume of shares traded was 103,639 at the BSE (12.32 p.m., Friday). 

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