Mumbai: JSW Steel Wednesday signed a joint venture agreement with Japanese Marubeni-Itochu Steel Inc (MISI) to set up a steel processing centre at an investment of Rs 122-crore in northern part of the country.
The equal joint venture company -- JSW MI Steel Service Centre -- will be equipped to process flat steel products such as hot rolled, cold rolled steel and coated products to cater to the needs of automotive, whitegoods, construction and other value added segments.
The company has not mentioned the exact location of the proposed plant.
The first phase of the project is expected to go on stream in FY'13 with an initial installed capacity of 180,000 tonne per annum, the company said in a statement here.
The project will be set up at a capital cost of Rs 122 crore and will be funded through 50 percent equity, equally from both the partners and the rest will be debt which would be raised from banks.
"The rapid growth of the domestic 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," JSW Steel Joint Managing Director & Group Chief Financial Officer Seshagiri Rao said.
JSW Steel has already acquired a majority stake in Ispat Industries and had also entered into a strategic collaboration with another Japanese alloy company JFE Steel Corporation for developing and manufacturing high-end automotive steel.
JSW Steel has manufacturing facilities at Vijayanagar and Vasind and Tarapur in Maharashtra and Salem in Tamil Nadu. With its upcoming greenfield steel plants in Bengal and Jharkhand, the company plans to produce 40 million tonne per annum steel by 2020.
First Published: Wednesday, October 12, 2011, 19:05