Friday, August 17, 2007

VISA Steel forms JV with Baosteel

Visa Steel Ltd has entered into a joint venture with Baosteel Trading of China and VISA Comtrade of Switzerland for setting up a 1,00,000 tonne per annum ferro chrome plant in Orissa.

VISA Steel will hold 51% stake in the venture, VISA Bao Ltd, while Baosteel Trading and VISA Comtrade will hold 35% and 14% shares respectively.The cost of setting up the ferro chrome plant and related infrastructure is estimated around Rs 260 crore, which will be financed through debt:equity ratio of 85:35.

VISA Steel also plans to commission its 300,000 tpa sponge iron plant and 50 MW waste heat recovery power plant by the end of 2007-08 (Apr-Mar) and the 0.5 million tpa special and stainless steel plant including a bar & wire rod mill and an additional 25 MW power plant by end of 2008-09.

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