India based Essar Steel has announced that it has clinched a comprehensive business partnership pact with Japan's fourth-largest steel maker Kobe Steel Ltd for technical assistance to bolster its high-end product mix for the automobile sector.

The sources revealed that under the proposed agreement, Kobe Steel will offer operational technology to Essar Steel which will enable it to make superior quality steel products.

The sources further revealed that the Essar is also searching the options to supply certain resources like slabs and raw materials to Kobe Steel.

While commenting on the agreement, the officials of Essar Steel India stated that the partnership will not only beef up company's products portfolio and allow it to produce steel for high-end applications in auto segment besides other technical guidance in certain arenas, but it will also opens the possibilities of working on joint projects in future.

Essar Steel, a unit of Essar Global Ltd is an integrated steel producer with end-to-end control of all operations related to steel making.

The company participates in offering products like iron ore pellets, hot briquetted sponge iron, hot-rolled products (coils, plates, sheets, and shot blasted and primed), cold-rolled products (coils/plates and sheets form) and galvanized products.

According to the reports, Essar is building a blast furnace, pellet and mill plants, amid other projects with the aim to diversify its capacity.