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JSW Steel and Marubeni-Itochu to setup Steel processing center in North India |
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Written by Vijay
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Thursday, 13 October 2011 |
Mumbai: JSW Steel Ltd and Marubeni-Itochu Steel Inc. Tokyo, (MISI) have signed a Joint Venture agreement to set-up a state-of-the-art steel processing center in North India, under the name of "JSW MI Steel Service Center Private Limited". JSW will hold 50% of the equity and the other 50% will be held by MISI.
The project will be set up at a capital cost of Rs. 122 crores and will be funded through 50% equity, equally from both the partners and the 50% debt element would be raised from Banks.
The first phase of the project is expected to come on stream in FY-2013 initial installed capacity of 180,000 tonnes per annum. The JV Company will be equipped to process flat steel products such as hot rolled, cold rolled and coated products with a view to offer just in time solutions to the automotive, white goods, construction and other value added segments.
Both JSW Steel & MISI have a history of cooperation in areas of mutual interest and this partnership will be further strengthened through the formation of the Joint Venture.
"the rapid growth of the Indian steel industry offers tremendous opportunity for supply of high end processed steel and through the JV, we could leverage the global sales network of Service Center Operations of MISI and the World Class Technology Products manufactured by JSW," said Seshagari Rao, Joint Managing Director & Group Chief Financial Officer, JSW Steel. |
