Man Industries considering a manufacturing unit in US

BS reported that Mumbai based Man Industries (India) Ltd is exploring the potential to set up a manufacturing unit in the US at USD 200 million.

As per report the company had the same idea about two years earlier and had even bought the required land, spurred by the US government’s huge pipe replacement plan. The scheme was postponed, as seven US and Indian companies entered the market at the same time. Total US demand for the particular product category at the time was about 1.2 million tonnes while the installed capacity of companies, including the new entrants, was estimated at 2.5 million tonnes.

Mr JC Mansukhani vice CMD of Man Industries said that “US also adopted protectionist measures due to intensified resistance from local steel pipe mills. Hence, MIIL retreated. It even sold the land it had bought for establishing a factory. Since then, a global recession has further depressed demand. Steel pipe mills also, as a rule do not operate at more than 60% of capacity. However, with a recovery underway, MIIL’s interest in the US scheme has renewed. The potential is huge for pipe replacement there.”

Mr Mansukhani said “A clear picture is expected to emerge by next year and then we probably would take our final decision.’

Mr K G Mantri senior VP corporate affairs said that “Now we have again started evaluating potential and monitoring the economic revamp closely. We would look for an investment opportunity of USD 200 million to produce approximately 300,000 tonnes of steel pipes of different diameter, gauges and sizes.”

(Sourced from http://www.steelguru.com/news/index/2009/09/21/MTEyNzY2/Man_Industries_considering_a_manufacturing_unit_in_US.html)

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