JSW Steel to set up Rs 165 cr JV in Georgia
Steel products maker JSW Steel Ltd on Friday said it has approved the proposal for setting up a joint venture plant at Rustavi in Georgia with an estimated project cost of $42 million (Rs 165.35 crore).
By PTI |
MUMBAI: Steel products maker JSW Steel Ltd on Friday said it has approved the proposal for setting up a joint venture plant at Rustavi in Georgia with an estimated project cost of $42 million (Rs 165.35 crore).
The board of directors decided to invest in Geo Steel LLC (GSL), a company incorporated under the laws of Georgia, to the extent of 49 per cent of equity, the firm said in a filing to the Bombay Stock Exchange.
Geo Steel is setting up a steel rolling mill facility in Georgia with an initial capacity of 175,000 tons per annum rebars, it said.
The plant is being designed to produce rebars through hot rolling process by using constructional steel billets produced through electric arc furnace route, it said.
The project is proposed to be financed by way of debt of $28 million and the balance through equity of USD 14 million, it said.
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Out of the total equity capital of $14 million required for setting up of the project, up to 49 per cent, i.e. $6.86 million, would be invested by JSW Steel Ltd through its wholly-owned subsidiary JSW Steel (Netherlands) B V and the remaining 51 per cent equity, i.e. $ 7.14 million, would be held by JV partner, it said. The company and JSW Steel (Netherlands) B V would also assist in successful implementation and continued operation of the project, it added.
The joint venture would cater to the growing needs of construction industry in East European countries, mainly in Georgia, Armenia, Azerbaijan, Russia and former CIS Countries.
The scrip of the company gained 1.07 per cent to Rs 1,317.75 at the close of trading on the BSE.
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