Essar Steel has completed the acquisition of steel
assets of Shree Precoated Steels Limited. This facility
has since become part of Essar Steel.
This acquisition will make Essar Steel the most
versatile flat steel producer with integrated facilities
from heavy plates, hot rolling, cold rolling, galvanizing
and colour coating, with a full distribution business
with Service Centre and Steel Hypermarts. This is
only plant in India that uses NIR (near infra red)
technology for colour coating which extends the
life of the product.
The colour coated products from this plant is well
accepted both in the domestic and export market
with exports accounting for 80% of its production.
The domestic market for colour coated products is
growing at over 30% due to increasing urbanization.
Essar Steel will utilize its network of Service
Centres and Hypermarts as a distribution channel
to market the products from this plant.
Commenting on the acquisition, Mr. Malay Mukherjee,
CEO, Essar Steel said, “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”
The assets that have been acquired include the plant
comprising colour coating line (annual capacity
4,00,000 tonnes), cold rolling mill (annual capacity
of 6,00,000 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. Rs. 1200 crores. This is funded
through a mix of debt and equity.
With the completion of this acquisition, Essar Steel
will have the largest cold rolling capacity (2 Million
tonnes), the largest Colour Coating facilities (0.4
million tonnes), galvanising capacity of 1.0 million
tonnes and pickling capacity of 2.2 million tonnes
in the country.
Essar Steel will now be able to provide end to end
service to address the customers’ needs. This
will support Essar Steel’ efforts to increase
the share of value added products in its portfolio
and fits well in the company’s expansion plans
of having manufacturing facilities in different
geographies.
About Essar Steel
Essar Steel, global producer of steel, is a fully
integrated flat carbon steel manufacturer—from
iron ore to ready-to-market products. Essar Steel
has an expanding global steel production capacity
of 14 million tonnes per annum (MTPA). Its products
find wide acceptance in highly discerning consumer
sectors, such as automotive, white goods, construction,
engineering and shipbuilding. Essar Steel produces
highly customised products catering to a variety
of product segments and is one of India’s
largest exporter of flat products to the highly
demanding US and European markets, and to the
growing markets of South East Asia and the Middle
East. It has the country’s most extensive
and the largest Service Centre capability with
an annual capacity of 2.5 MTPA, and the largest
network distribution channel with over 230 branded
Essar Hypermarts. It has invested in downstream
capabilities to evolve from being a product based
company to becoming a value added service provider.
For Media Queries
Manish kedia, Sr. VP – Corporate Affairs,
Essar Group,
Phone: +91 98197 30092, Email: manish.kedia@essar.com
B.Ganesh Pai, GM - Corporate Communications,
Essar Group,
Phone: +91 98197 30225, Email: ganesh.pai@essar.com |
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