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Under the deal, FLSmidth Private Limited India will be able to supply the Kobelco Pelletizing System in India, with projects in other countries to be evaluated on a case by case basis, Kobe Steel said on Wednesday April 23.

FLSmidth Private Limited India is a wholly-owned subsidiary of Denmark-headquartered FLSmidth & Co. A/S, a global leading supplier of equipment and services to the minerals and cement industries.

Crude steel production in India reached 81.2 million tonnes last year and is anticipated to be “prosperous in the future”, the Japanese steelmaker said, citing the World Steel Assn (Worldsteel).

“[The] Indian government’s aim to increase steel production to 300 million [tpy] by 2025 has enhanced the need for iron and other related production facilities, including pellet plants,” the company noted.

“Kobe Steel and FLSmidth will cater to this demand by jointly promoting the Kobelco Pelletizing System,” it added.

Kobe Steel has supplied its pellet plants to companies like Bahrain Steel and Brazil’s iron ore giant Vale.