JSW Steel, the flagship company of the $11 billion Indian conglomerate JSW Group, has announced its plan to set up a second steel processing center in Pune with its JV partner Marubeni Itochu Steel Inc. (MISI), Tokyo.
The first phase of the project is expected to go on stream by 2015 with an annual installed capacity of 1,80,000 tonnes which will be scaled upto 3,60,000 tonnes in phase 2. The project to be set up at a capital cost of Rs. 204 crores will be funded through 50 per cent equity and 50 per cent debt element.
Mr. Seshagiri Rao, Joint Managing Director, JSW Steel & Group Chief Financial Officer, said: “The rapid growth of the Indian steel industry offers tremendous opportunity for supply of high-end processed steel. We can leverage the global sales network of expertise of service center operations of MISI and the world class technology products manufactured by JSW.”
The joint venture company is 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.
In 2011, JSW Steel and Marubeni Itochu Steel Inc. have formed a JV to set up a steel processing center near Palval (Haryana) named JSW MI Steel Service Center Pvt. Ltd.
JSW Steel and MISI have both a history of co-operation in areas of mutual interest which will further strengthen going forward.