PSL in JV for pipe plant in US

MUMBAI: PSL, one of India’s largest pipe makers, has formed a joint venture with US-based A&L group to build a plant in Mississippi that will meet the growing demand for spiral pipes in the world’s largest pipeline market.

PSL managing director Ashok Punj said his company would hold 75% in the joint venture — PSL North America — which would spend $60 million to build the plant. “We would contribute $20 million as equity for the project, while most would be borrowed,” he added.

The steel pipes are used to transport oil and gas and in some projects, water. “The joint venture has been given 156 acres of land in Mississippi and also assured of incentives such as tax free bonds and tax holidays by the governor of the state,” said Mr Punj. The plant, scheduled to be ready by early 2008, will have the capacity to make 300,000 tonnes of steel pipes.