The Hindu : Business : Tata, BlueScope 50:50 venture for coated steel

Online edition of India's National Newspaper
Friday, Nov 11, 2005

Business

Business

Tata, BlueScope 50:50 venture for coated steel

Rs. 900 cr. investment envisaged for the new plant

Plant to be located at Jamshedpur New facility to become operational by mid-2008 To provide pre-engineering building solutions

NEW DELHI: Aiming to expand its business in the mineral-based manufacturing sector, Tata Steel on Thursday announced the floating of a 50:50 joint venture with global giant BlueScope Steel to produce zinc and aluminium metallic coated, painted and rollformed steel products.

The proposed joint venture agreement, which is to be signed on November 16 in Jamshedpur, also entails an investment of Rs. 900 crore for construction of a metallic coating and painting facility in the same town.

Besides, the new venture would assume ownership and responsibility for the development of three rollforming and PEB (pre-engineered buildings) manufacturing facilities of BlueScope Steel at Pune, Chennai and New Delhi. Moreover, the ownership will be extended to BlueScope's LYSAGHT rollformed businesses in Sri Lanka.

The joint venture company, to be headquartered at Pune, would provide PEB and other building solutions and broaden its business base across India and South Asia, Tata Steel said.

``Tata Steel and BlueScope Steel share a similar approach to value creation in the steel business. Consumers will benefit from the range of solutions that will now be available to the building industry,'' Tata Steel Managing Director, B. Muthuraman, said.

The facility was expected to become operational by mid-2008. Government approvals and preliminary engineering would be completed by mid-2006, it said.

BlueScope has a network of more than 50 rollforming facilities in 13 countries and steel PEBs in China and North America.— PTI

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