Mumbai, Nov 17 (UNI) Giving a major push to greater use of steel in construction industry in India, JSW Steel's subsidiary, JSW Building Systems, today entered into a 50:50 joint venture with Severfield Reeve Structures of UK, to set up a Rs 220 crore facility in its unit in Bellary in Karantaka.
To be commissioned in 14 months at the Vijaynagar Steel plant of JSW in Bellary, JSW Building Systems and Severfield Reeve Structures would share equally an equity of approximately Rs 73 crore with the balance raised through debt to set up one of the most modern structures facility in the world, Tom Haughey, chief executive officer of Severfield, told newsmen at a joint press conference here. The new JV would be called JSW Severfield Structures Ltd and the turnover at full capacity would be around Rs 400 crore.
JSW vice chairman and managing director Sajjan Jindal said that the plant would have a capacity of 35,000 tonnes and plans were afoot to increase it to over 100,000 tonnes in five years, by setting up similar facilities near Delhi, Mumbai and one in Eastern India.
However, he declined to comment on future investments stating that much would depend on the success of the first phase.
He said the JV business would consume steel plates, galvanised products, thus providing an added value route for JSW Steel.
He said with the steel prices coming down, there was hope for increased consumption of steel by the construction industry.
JSW Building Systems director Jayant Acharya said the JV would be involved in design, production and erection of structural steel work to principally service the Indian markets. It would offer a uinique service to the construction indsutry with steel being provided in a new and competitive manner.
Replying to a question, Mr Haughey said that the current global financial meltdown might not affect the new joint venture and expressed hope that by the time the unit went on stream, the situation would have returned to normalcy. Moreover, the demand for steel was huge in India, he added.
Severfield Rown has an annual group durnover of 350 million pound-sterling. Some of its major projects included the renovated Oval cricket ground, Terminal five of the Heathrow Airport in London, Arsenal Football Club's Emirates Stadium and the Westfield White City retail development in London.
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