SAIL Obtains Management Control of Steel Complex Ltd in Kerala
02/15/2011 - Maharatna Steel Authority of India Limited has formally acquired 50% of the shares of Steel Complex Limited (SCL) in Kozhikode held by the Government of Kerala. SAIL took over the SCL operations on February 13.
Maharatna Steel Authority of India Limited (SAIL) has formally acquired 50% of the shares of Steel Complex Limited (SCL) in Kozhikode held by the Government of Kerala. SAIL took over the SCL operations on February 13.
The acquisition will result in the formation of a new joint venture company, SAIL-SCL Limited. The new company will work toward the revival of SCL by setting up a new 65,000 tonnes per annum rolling mill to produce high grade (Fe 500 & above) TMT bars at an estimated investment of Rs. 45 crore. The JV is expected to be a milestone in the Government’s policy of bringing together synergies of PSUs and strengthening them to be competitive in the market.
In May 2008, SAIL had signed a memorandum of understanding on the request of the Government of Kerala for revival of state-owned SCL. Subsequently, a JV agreement was signed between the Government of Kerala and SCL in December 2008 to enable acquisition of shareholding by SAIL, development of SCL by setting up a rolling mill and fulfillment of certain terms & conditions by the state government. Subsequent to fulfillment of conditions of the agreement, the JV became operational in December of 2010.
In May 2008, SAIL had signed a memorandum of understanding on the request of the Government of Kerala for revival of state-owned SCL. Subsequently, a JV agreement was signed between the Government of Kerala and SCL in December 2008 to enable acquisition of shareholding by SAIL, development of SCL by setting up a rolling mill and fulfillment of certain terms & conditions by the state government. Subsequent to fulfillment of conditions of the agreement, the JV became operational in December of 2010.
The joint venture’s operations will be synergized with SAIL’s core strengths by installation of billet conversion facility, raw material tie-ups, and SAIL’s marketing of SCL products.
SAIL-SCL Ltd presently has the capacity to produce 55,000 tonnes of EAF-generated liquid steel per annum and 50,000 tonnes of concast billets per year. The JV aims to tackle issues such as shortage of working capital, ensuring uninterrupted supply of scrap, and adding value to its products by converting billets into TMT bars. The possibility of marketing SCL products by harnessing SAIL’s nationwide dealer network is also being explored.
SAIL-SCL Ltd presently has the capacity to produce 55,000 tonnes of EAF-generated liquid steel per annum and 50,000 tonnes of concast billets per year. The JV aims to tackle issues such as shortage of working capital, ensuring uninterrupted supply of scrap, and adding value to its products by converting billets into TMT bars. The possibility of marketing SCL products by harnessing SAIL’s nationwide dealer network is also being explored.
