HEG to hive off steel operations for Rs 88.5 cr

New Delhi, July 18 (UNI) HEG Ltd today said it will sell its steel business to Kolkata-based Jai Balaji Industries Ltd for an amount of Rs 88.5 crore.

''The decision to hive-off the steel business stemmed from our strong belief that HEG's core graphite electrodes business addresses a growing global market where HEG is already an established player that is well regarded for the quality of its products and commitment to its clients.'' said Chairman and Managing Director of the company Ravi Jhunjhunwala, Driven by a greater focus on its core business operations, following the divestment in the steel business, HEG will be able to further strengthen its balance sheet and leverage its global market position and deliver progressive performance in the future, he added.

The Durg steel unit will be de-merged from the company with effect from August 1, 2007. Post the de-merger the company will emerge as a focused graphite electrodes company where it enjoys a well-established global position as a manufacturer of world-class graphite electrodes.

The company has a number of respected steel manufacturers - Arcelor Mittal, POSCO, Krupp Thyssen, US Steel, Nucor, and Usinor in its customer portfolio.

UNI