JSW Steel has formed joint venture with UK based Severfield-Rowen for manufacturing construction steel.
JSW Building Systems and Severfield Reeve Structures, the subsidiaries of both the firms, will invest Rs 220 crore in setting up the plant at Bellary in Karnataka. The facility will have an annual capacity of 35,000 tonnes and the new company will be involved in design, production and erection of structural steelwork.
Sajjan Jindal, vice-chairman & managing director of JSW Steel, said, “initially, both the companies will jointly invest Rs 73 crore towards equity in the 50:50 joint venture company called JSW Severfield Structures and the remaining fund will be raised as debt. The company is in talks with a slew of banks to raise the fund. The turnover at full capacity will be close to Rs 400 crore.”
Severfield Reeve Structures has an annual turnover of £350 mn. Severfield-Rowen has supplied steel for Heathrow airport’s Terminal Five and English football club Arsenal's Emirates Stadium and it has an order book of $609 mn.
MVS Seshagiri Rao, finance director of JSW Steel, said, “the company would rollback its decision to cut its long-product output to 40,000 tonnes a month from 65,000 tonnes. The production of long-products will be in full capacity from December as demand improves. However, the company will continue with its 20% production cut in flat steel production owing to the demand slump in auto sector.
Group-buying and deals site Mydala run by Kinobeo Software Private Limited is in talks with its existing investor Info Edge and two other investors to raise $80 Mn. The pre-money valuation of the firm is nearly $200 Mn.