VISA Steel signs JV with Chinese company for Orissa plant

Kolkata, Aug 17 (UNI) VISA Steel Limited, India, today entered into a joint venture with Baosteel Trading Co. Ltd, China and VISA Comtrade AG, Switzerland for setting up of a 100,000 TPA Ferro Chrome plant in Orissa.

VISA BAO Limited, The JV company, will be a subsidiary of VISA Steel, which will hold 51 per cent stakes of the company. Baosteel Trading and VISA Comtrade will hold 35 per cent and 14 per cent shares respectively.

The JV agreement was signed in Sanghai by Mr Vishal Agarwal, Managing Director of VISA Steel, Mr Li Qing Yu, President of Baosteel Trading and Mr Vivek Agarwal, Executive Director of VISA Comtrade in presence of VISA Group Chairman Vishambhar Saran, company sources said.

The cost of setting up the plant and related infrastructure is estimated at Rs 260 crore, which will be financed through a debt equity mix of 65:35.

Baosteel Trading is the designated company in Baosteel Group Corporation (Baosteel) for overseas investment in resource development to support the raw material requirements of Baosteel's plants in China and has the sourcing rights for imports of Ferro Chrome into China for consumption by Baosteel and its affiliates.

Baosteel is the largest and most modern steel enterprise in China with a capacity of about 24 million TPA of steel, including stainless steel, for which they have a long-term demand for Ferro Chrome.

VISA Comtrade is the international trading, shipping and logistics arm of the Rs 2,000 crore VISA Group, providing global supply chain solutions for energy products, minerals and metals.

Headquartered in Switzerland, VISA Group has a global network of offices including Australia, China, Indonesia, Singapore and the UK.

VISA Group has had its office in Beijing since 1994 and VISA Comtrade has been active in sourcing coal and coke from China and supplying minerals such as chrome ore/concentrates and iron ore, Ferro Chrome and non-ferrous products to China. Baosteel has been one of the long-standing customers of VISA Comtrade in China.

'' This JV takes our relation with Baosteel another step forward and ensures a win-win situation for both companies through a long-term market for the JV company and a stable supply of Ferro Chrome for Baosteel's stainless steel plant in China,'' Mr.

Bishambhar Saran said.

UNI