JSW Steel has announced that its joint venture with Japanese steel maker Marubeni-Itochu Steel was building a processing steel facility in Pune, mainly targeting the automobile manufacturing units near the city. The facility, to be built at a cost of Rs.204 crore, would be the second such one by the joint venture, in which both partners hold equal stake.
The Pune facility, which is expected to be commissioned in 2014-15, will have an initial capacity of 1.8 lakh tonnes annually, according to a JSW Steel release. It will be doubled in the second phase.
The debt-equity ratio for the project is 1:1, the release adds.
The facility will be equipped to process flat products such as hot-rolled, cold-rolled and coated products with the objective of offering them to clients on a ‘just-in-time’ basis. A company source said that although the ‘primary’ objective of the facility was to address demand from automobile manufacturers, the company was also targeting white goods units, construction and other value-added segments.
The joint venture, formed in 2011, established its first facility in Palwal in Haryanawith an annual capacity of 1.6 lakh tonnes.
