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Severstal, NMDC Sign MOU for Joint Venture Plant in India
12/13/2010 - OAO Severstal and NMDC Ltd., a Navratna Public Sector Undertaking under the Government of India, have signed a Memorandum of Understanding to establish a joint venture company to build an integrated steel plant with a capacity between 2 and 5 million tonnes per annum in Karnataka, India.
OAO Severstal and NMDC Ltd., a Navratna Public Sector Undertaking under the Government of India, have signed a Memorandum of Understanding (MOU) to establish a joint venture company to build an integrated steel plant.
The joint venture company proposes to have its captive coking coal mining subsidiary in Russia and iron ore mining subsidiary in India. The plant, which will be constructed in Karnataka, India, will have a capacity between 2 and 5 million tonnes per annum.
NMDC and Severstal will each have a 50% shareholding in the joint venture and will appoint the senior management team.
Alexey Mordashov, Chief Executive of OAO Severstal, said: “The signing of this MOU is an important strategic development for Severstal as it will establish an integrated steel plant in one of the world’s most attractive growth markets.”
Severstal is an international steel and mining company with a listing on the Russian Trading System and on the London Stock Exchange. The company focuses on high added value products and unique niche products. It owns mining enterprises in Russia and the U.S., supplying them with raw materials. The company also has a gold mining segment, managing important assets in Russia and Kazakhstan. In 2009, Severstal produced 16.7 million tonnes of steel.
