PSL enters into JV with US-based A

Mumbai, May 4 (UNI) Mumbai-based PSL Ltd, a key enabler for infrastructure and construction projects, has entered into a joint venture with the US-based A&L Group to set up PSL-NA (North America), a subsidiary of PSL Ltd.

PSL NA - whose plant is to be located in the U.S. Gulf Coast - will install a state-of-the art pipe manufacturing and coating facility on a 156 acre site at the Port Bienville Industrial Park, Mississippi.

Mr Ashok Punj, MD, PSL Ltd, confirmed completion of negotiations resulting in the allocation of 156 acres of land, along with an attractive package of incentives, to PSL North America, a company release said.

PSL Ltd, a 1700 crore company, has carved a niche for itself in the Indian pipe manufacturing and pipe coating business. It is the only Indian company with a state-of-the-art two-step pipe mill, and is the 3rd company in the world with such a facility.

The JV will be funded by PSL Ltd with an aggregate consideration of approximately USD 20 million in equity. PSL will hold a majority stake of approximately 75 percent in the JV, while the A&L Group and associates will hold the remaining stake. Annual plant capacity will ultimately be 300,000 short tons, depending on order mix. The plant employment at capacity will exceed 300. The state-of-the-art facility will utilize the latest technology available in the industry.

''PSL-NA is building this facility because there is a significant imbalance with domestic US demand far exceeding domestic supply of large diameter line pipe for natural gas transportation requirements,'' the release said.

Punj said ''We look forward to building upon our relationship with the A&L Group through the formation of this joint venture.

This partnership will initiate our pipe manufacturing capabilities within the United States, and will thus be our prime inroad into the U.S. market.'' PSL Ltd is a world leader in spiral pipe production with over thirty years of experience. The Company is now engaged in various types of pipe coating and pipe manufacturing activities, with plants in Daman, Kandla, Jaipur, Chennai, Kakinada, and Vishakhapatnam. It is India's largest pipe maker by volume capability.

UNI