ISCL, Mitsui sign JV

Mumbai, Nov 27 (UNI) Japanese major Mitsui has signed a joint venture agreement with Ruchi Group to increase its present equity stake of 10 per cent to 20 per cent for the expansion of Indian Steel Corporation Limited (ISCL), located near Kandla, to manufacture cold rolled steel/galvanized and color coated steel products.

The present designed production capacity of ISCL is 200,000 tonnes per year for cold rolled steel and 120,000 MT/year for galvanized products. With the expansion, ISCL would be adding capacity of more than 400,000 MT of cold rolling and coated products, a company press release said.

The expansion is expected to reach full operation by the year 2009. The total project cost would be around Rs 1250 crore.

The project would target the booming construction and auto sectors which are witnessing robust growth.

ISCL chairman Kailash Chandra Shahra said in the release, '' This investment reflects Mitsui's confidence in Ruchi as well as in Indian Steel sector.'' UNI AR MAZ VKG1721