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JSW Steel to Form JV with Marubeni-Itochu Steel
10/13/2011 - JSW Steel Ltd. and Marubeni-Itochu Steel Inc. (MISI) have signed a joint venture agreement to establish a state-of-the-art steel processing center in North India, under the name JSW MI Steel Service Center Private Ltd.
JSW Steel Ltd. of Mumbai and Marubeni-Itochu Steel Inc. (MISI) of Tokyo have signed a joint venture agreement to establish a state-of-the-art steel processing center in North India, under the name JSW MI Steel Service Center Private Ltd.
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 funded through 50% equity equally from both partners; the 50% debt element would be raised from banks.
The first phase of the project is expected to come on stream in FY 2013 with an 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 the goal of offering just-in-time solutions to the automotive, white goods, construction, and other value-added segments.
Commenting on the joint venture, Seshagiri Rao, Joint Managing Director and Group Chief Financial Officer, JSW Steel, said that the rapid growth of the Indian steel industry offers tremendous opportunity for supply of high-end processed steel and through the JV, the companies could leverage the global sales network of the service center operations of MISI and the high-technology products manufactured by JSW.
The JSW Group is one of the fastest-growing business conglomerates in India with a strong presence in the core economic sector. Part of US $15 billion O.P Jindal Group, JSW has diversified interests in steel, energy, infrastructure, mining, cement, aluminum and information technology. JSW Steel’s manufacturing facilities are situated at Vijayanagar (Karnataka), Vasind and Tarapur (Maharashtra), and Salem (Tamilnadu).
Marubeni-Itochu Steel Inc. (MISI) was founded in October 2001 (with its share of 50% of Itochu Corp. and 50% of Marubeni Corp.) and has more than 100 offices, subsidiaries and several tens of thousands of business partners both within and outside Japan. MISI integrates information, distribution, finance and human resources using a global network that combines the capabilities of general trading companies Itochu Corp. and Marubeni Corp.
