October 12, 2013

JSW Steel Limited, Mumbai (JSW), and Marubeni-Itochu Steel Inc., Tokyo (MISI), have signed a joint venture agreement to set-up a state-of-the-art steel processing centre in North India under the name of JSW MI Steel Service Center Private Limited.

JSW will hold 50 per cent of the equity, and the other 50 per cent will be held by MISI. The project will be set up at a capital cost of Rs. 122 crore and will be funded through 50 per cent equity; equally from both the partners and the 50 per cent 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 tons per annum. The JV Company will be equipped to process flat steel products such as hot rolled, cold rolled and coated products with a view to offer just-in-time solutions to the automotive, white goods, construction and other value-added segments.

Both JSW Steel and MISI have a history of cooperation in areas of mutual interest, and this partnership will be further strengthened through the formation of the joint venture.

Commenting on the joint venture, Mr. Seshagiri Rao, Joint Managing Director and Group Chief Financial Officer, JSW Steel, stated that the rapid growth of the Indian steel industry offers tremendous opportunity for supply of high-end processed steel and “through the JV, we could leverage the global sales network of service center operations of MISI and the world-class technology products manufactured by JSW.”