Vardhman Special Steels Limited (VSSL) has strengthened its strategic partnership with Japan’s Aichi Steel Corporation, as the latter increased its equity stake in VSSL from 11.33 per cent to 24.90 per cent. The formal signing took place at a ceremonial event, marking a key milestone in Indo-Japanese industrial cooperation.

The increased investment underscores Aichi Steel’s growing confidence in VSSL and the potential of the Indian steel sector. It also signals a shared commitment to building a world-class green steel manufacturing facility in India, aimed at producing high-quality special and alloy steels for global automotive and engineering markets.

The upcoming plant, to be developed with technical support from Aichi Steel, will have a manufacturing capacity of 500,000 tonnes per annum, backed by an estimated capital expenditure of Rs 20 billion. The facility will integrate advanced Japanese steelmaking processes and focus on supplying both domestic and ASEAN markets.

Speaking on the occasion, Mr Sachit Jain, Vice Chairman & Managing Director of VSSL, said, “Aichi Steel’s enhanced investment affirms our shared vision for long-term, sustainable growth. This partnership will establish a global benchmark in green steel production and reinforces our alignment with the Government’s ‘Make in India’ initiative.”

Mr Naohide Goto, President of Aichi Steel, noted that both companies are uniquely positioned for low-carbon steelmaking, given their reliance on electric arc furnaces and robust scrap recycling networks. “We believe Vardhman’s use of green energy and advanced processes will serve customers seeking environmentally friendly steel products,” he added.

The collaboration aims to deliver high-quality, cost-effective, and sustainable steel to meet global demand while contributing to India’s economic and environmental goals. The agreement cements VSSL and Aichi’s long-term affiliation and highlights India’s rising importance as a hub for responsible steel production in the region.