Gupta Machine Tools (GMT), Indian precision tool company will set up a new joint venture to process silicon steel for electronics applications with Japan’s steel trader Marubeni-Itochu Steel.

It’s expected the monthly capacity will be about 5000 tons to 6000 tons and the JV will be commissioned by the end of 2011, locating in Western India’s Gujarat state.

GMT holds 80.1% of the stakes and the rest is held by the Japan’s company. The ilcon sheets will be supplied to GMT subsidiary, Precision Stamping.

According to the Gupta Machine official, India’s demand for silicon sheet market is expected to rise about 20~30% every year from current 400 thousand tons to 500 thousand tons per year.

Current producers in India are Steel Authority of India’s Rourkela works and ThyssenKrupp Electrical Steel India.