The Hindu : Stollberg to make India production hub

Online edition of India's National Newspaper
Tuesday, Dec 17, 2002

Business

Business

Stollberg to make India production hub

By Our Staff Reporter

KOLKATA DEC. 16. The Stollberg Group, world's leading metallurgical chemicals research and manufacturing company for the steel industry, is considering shifting of its substantial excess capacities worldwide to India. Its Indian subsidiary, Stollberg India Pvt Ltd, which started production at Durgapur, West Bengal in December 2001, primarily to serve the SAARC countries had already established itself as the best performer in cost-quality comparisons.

Admitting that there were plans to convert India as the production hub for exports, S. K. Chakraborty, Managing Director, Stollberg India, said the company had already achieved far higher growth than expected within a year of operation and was planning to achieve its five year targets in the next two years. "Right now, we are assigned to market our produce to the neighbouring countries of India. However, in future we may share the major steel making markets of Russia, Southeast and West Asia.''

Mr. Chakraborty said the group had already acquired competing capacities in India from Foesco India and Kawasaki in February this year for Rs. 7.50 crores. " We have already compacted our five year growth plan into two years and chalked out major expansion through backward and forward integration''.

While the backward integration would be completed in 2003 with the setting up of `insulation of steel' capacities at the Durgapur facility, the Indian subsidiary had already incorporated a joint venture company for forward integration with the Bhutan Government.

The JV, to be set up in Bhutan, would take care of the refining of steel before casting by using cored wire technology. Major machinery and equipment for the project might be imported from the Group's idle production lines in developed markets.

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