Specialty steel maker Mukand Ltd and Sumitomo Corp of Japan have come together to form a joint venture to set up a rolling mill in Karnataka.
With an initial capacity of 3,75,000 tonnes per annum, the joint venture, Mukand Alloy Steel Pvt Ltd (MASPL), will set up a steel rolling mill unit at Hospet in Karnataka.
According to a statement, Mukand will hold 51 per cent stake in the JV and Sumitomo 49 per cent equity with an enterprise value of Rs 2,820 crore.
The new company will be engaged in the rolling and finishing of Mukand’s principal business of alloy steel long products. It will exclusively procure the required alloy steel billets and blooms from Mukand’s steel making facility at Hospet, it stated.
The agreement was signed at Kyoto, Japan in the presence of Rajesh Shah, Co Chairman and Managing Director of Mukand and Kuniharu Nakamura, President and CEO of Sumitomo.
MASPL will initially invest Rs 550 crore in the proposed plant at Hospet.
The statement further said: “The JV will combine Mukand’s manufacturing and engineering capabilities and Sumitomo’s marketing management skills and know-how to cater to a growing automobile market globally.”
Image credit : mukand.com