JSW Building enters into a JV with UK-based Severfield

NEW DELHI: JSW Building Systems, a wholly owned subsidiary of JSW Steel, on Monday announced the formalisation of a joint venture company with UK-based Severfield Reeve Structures to create a new steelworks business in Karnataka.

The joint venture (JV) will be called JSW Severfield Structures Ltd, in which the two partners will have 50 per cent equity participation each, a statement from JSW Steel said.

The new company will be involved in design, production and erection of structural steelwork to principally service the Indian market. It will take up a Rs 220 crore project to produce 35,000 tonnes of structural steel in Bellary district of Karnataka.

The project cost will be funded through a mix of debt and equity in the ratio 2:1. The turnover of the new company is expected be close to Rs 400 crore when its production reaches optimum capacity, the statement said.

Commenting on the tie-up, JSW Steel Vice-Chairman and Managing Director Sajjan Jindal said the JV will provide the company scope for value addition as it will consume products like steel plates and galvanised items.

"Steel buildings are gaining momentum in India. Indian corporates are increasingly implementing large projects using steel buildings, the advantages being saving in construction time, enhanced aesthetics and durability," he said.