PSL to invest $103 mn to set up plant in US

NEW DELHI: Pipe maker PSL Ltd on Tuesday said it will invest $103 million for setting up an integrated pipe manufacturing and coating facility in Mississippi in the US.

The company has formed a joint venture (JV) with Mississippi State Government through the Mississippi Business Finance Corporation (MBFC), PSL said in a statement.

The investment would be done through a newly established JV company, PSL North America.

"Of the total investment, $78 million was raised by issuance of a 25-year bond by the MBFC. The bond would have a $68 million tranche which would be tax-free," the domestic company said.

The first phase of the project entails setup and commissioning of an integrated pipe facility that would manufacture, coat and internally-line large diameter API grade pipes.

The annual plant capacity would ultimately be 3,00,000 short tons depending on order mix, it said.

Commenting on the development, PSL North America CEO Brian Vaill said, "With funding in place, we are now well positioned to complete this project on-time and on-budget."