BL reported that Steel Authority of India Ltd is all set to take over the Salem unit of the ailing public sector Burn Standard Ltd.
The report quoted Mr SK Roongta chairman of SAIL as saying that the sale has been approved by the Board for Reconstruction of Public Sector Enterprises and SAIL is going through the formalities for taking over the unit.
He added that “The products of the Salem unit of Burn Standard are inputs for BRL and hence it is a backward integration move for SAIL.”
Burn Standard’s Salem unit manufactures refractory units such as magnesite brick, fire brick, calcined magnesite and man alumina brick. In 2006-07, the company made a net loss of INR 151 crore. In the year, the latest for which information is available, the Salem unit produced 81,652 tonnes of refractory material.
The unit is relevant to SAIL because the public sector steel giant has just merged with itself another public sector unit, Bharat Refractories Ltd.
(Sourced http://www.steelguru.com/news/index/2009/09/19/MTEyMzgw/SAIL_to_take_over_Salem_refractory_unit_of_Burn_Standard.html)
Friday, September 18, 2009
SAIL to take over Salem refractory unit of Burn Standard
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