The Hindu Business Line : Rs 900-cr unit in Jamshedpur — Tata Steel to tie up with BlueScope

TATA Steel and Australia's BlueScope Steel today announced that they have agreed to enter into a partnership to form a 50:50 joint venture company in India.

"The joint venture company will build a new business across India and South Asia that will manufacture zinc/aluminium metallic coated steel, painted steel, and roll formed steel products, and deliver pre-engineered buildings (PEBs) and other building solutions," the two companies said in a joint release.

The joint venture company is setting up a metallic coating and painting facility at Jamshedpur, adjacent to Tata Steel's existing steelworks, at a cost of Rs 900 crore.

This facility will have an annual metallic coating capacity of 250,000 tonnes and paint line capacity of 150,000 tonnes.

"The investment is consistent with the company's strategy of growing its downstream value-added products business in Asia," the release said.

The joint venture would be headquartered in Pune. The groundbreaking ceremony for this facility would be held in Jamshedpur on November 16.

The new facilities are expected to be operational by the middle of calendar 2008.

"Various Government approvals and preliminary engineering should be completed by the middle of calendar 2006 when construction activities will start."

The decision to set up a metallic coating and painting facility was taken after a 12-month feasibility study done jointly by Tata Steel and BlueScope Steel representatives.

"The study confirmed the significant market opportunity to take the leadership position in quality coated and buildings solutions within South Asia," the release said.

"Tata Steel and BlueScope Steel share a similar approach to value creation in the steel business. Consumers would benefit from the range of solutions that will now be available to the buildings industry. This joint venture combines the strengths of the two organisations and would increase the use of value-added steel products," it said, quoting Mr B. Muthuraman, Managing Director, Tata Steel.

"Together, BlueScope Steel and Tata Steel have forged a powerful partnership, which will capitalise on the strengths of our two organisations in steel production and in bringing to market premium quality branded products. Both companies see the value in implementing this coated steel development strategy across South and North Asia,'' the release quoted Mr Kirby Adams, Managing Director and CEO, BlueScope Steel, as saying.

Approvals have been granted for the joint venture to construct the facility.

The joint venture will also assume ownership and responsibility for the development of the three roll forming and PEB manufacturing facilities that BlueScope Steel has under construction at Pune, Chennai, and New Delhi.

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