Essar Steel announced that it has completed the acquisition of steel assets of Shree Precoated Steels Limited. This facility has since become part of Essar Steel.
The assets that have been acquired include the plant comprising color coating line, cold rolling mill annual capacity of 600,000 tonnes, galvanizing line annual capacity of 500,000 tonnes and pickling line annual capacity 650,000 tonnes. The plant is strategically located at Sanaswadi near Pune, Maharashtra, which is one of the largest steel consuming centre.
The total value of the fixed and current assets acquired is approx INR 1200 crores. This is funded through a mix of debt and equity.
Mr Malay Mukherjee CEO of Essar Steel said that “Going forward, it is important for the steel companies to widen the product base. This acquisition is aimed at achieving that objective. We will be able to capitalize on the synergies offered by this plant through technical expertise of Essar Steel”
With the completion of this acquisition, Essar Steel will have the largest cold rolling capacity 2 million tonnes, the largest color coating facilities 0.4 million tonnes, galvanizing capacity of 1.0 million tonnes and pickling capacity of 2.2 million tonnes in the country.
http://www.steelguru.com/news/index/2009/11/12/MTE5ODk1/ESSAR_steel_completes_acquisition_of_Shree_Precoated.html
Wednesday, November 11, 2009
ESSAR steel completes acquisition of Shree Precoated
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