Gerdau Group, the Brazilian company that manufactures long steel has acquired majority stake in JV - Kalyani Gerdau from Kalyani Group.

Gerdau has changed the name of the company to Gerdau from Kalyani Gerdau and the majority of operation is owned by Gerdau.

In 2007, Kalyani Steels and Gerdau S.A entered into JV to acquire SJK Steels, which had integrated alloy steel plant located at Tadipatri in Andhra Pradesh, with an installed capacity of 275,000 tons p.a.

As per the JV agreement, both companies had equal partnership of 45% each in SJK Steel Plant Ltd and the remaining 10% was owned by other investors.

Post deal, the Brazilian company now holds about 99.5% stake in the Tadipatri unit and with expansion of the equity base, the shareholding of the FIs and the previous owner of the unit declined to 0.5%.

In 2011, IFC provided loan to the company to enhance company's steel manufacturing facility in Tadipatri district; while in 2010, it invested $25 Mn in KGSL to partly fund the restoration and modernization of the steel manufacturing facility.

Recently, the plant has started operations of its blast furnace, melt shop, sinter plant, power plant and rolling mill. It has an installed capacity of 3,00,000 tonnes of special steels, mainly focused on the automotive market.

Gerdau has a crude steel production capacity of 25 mpta and rolling capacity of 22 mn tonnes, spread over 14 countries.

Kalyani Steels produces forging quality carbon and alloy steel, catering primarily to the raw material requirements of forged products used in the automobile and engineering industries.

In this space recently, Harsco was planning to acquire companies in onsite contract services to steel & metal companies in infrastructure, rail and industrial sectors.

Tata Steel has entered into a strategic pact with Labrador Iron Mines Holdings. Jindal Steel and Power Limited raised R3500 Cr from a consortium of lenders for a steel project in Odisha.

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