JSW Steel (JSW), part of the O. P. Jindal Group, and Marubeni-Itochu Steel Inc. Tokyo, (MISI) have signed a joint venture agreement to set up a steel processing centre in North India, under the name of JSW MI Steel Service Centre Pvt. Ltd.
Both partners will hold half the equity and the project will be set up at a capital cost of Rs.122 crore and funding for the same will also be shared through an equal portion of equity and equal debt raised by the partners.
The first phase of the project is expected to go on stream in 2012-13 with an initial installed capacity of 1.80 lakh tonnes per annum.
The joint venture company will be equipped to process flat steel products such as hot rolled, cold rolled and coated products with a view to offering just in time solutions to the automotive, white goods, construction and other value added segments.
Both JSW Steel and MISI have cooperated in areas of mutual interest earlier and this partnership will be further strengthened through the formation of the joint venture.
Commenting on the joint venture, Seshagiri Rao, Joint Managing Director and Group Chief Financial Officer, JSW Steel, said “the rapid growth of the Indian steel industry offers tremendous opportunity for supply of high end processed steel and through the joint venture, we could leverage the global sales network of service centre operations of MISI and the world-class technology products manufactured by JSW”.