JSW Steel Ltd, India's second major private sector steel manufacturer has announced that its wholly owned arm JSW Building Systems Ltd, has entered into a joint venture with UK-based Severfield Reeve Structures with the aim to create significant steelwork business based in Bellary district of Karnataka.

According to the sources, in joint venture (JV) JSW Severfield Structures Ltd, the two partners will hold 50 per cent equity participation each.

The sources further revealed that the proposed project will be equipped with a capacity of producing 35000 tonnes of structural steel per annum and would entail an investment of 30 million pound (about Rs 220 crore). The funding of the project will be done through a mix of two third debt and one third equity.

While commenting on the joint venture, Mr. Sajjan Jindal, Vice Chairman and Managing Director of JSW Steel Ltd stated, "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. The JV business will consume products like steel plates and galvanised items."

According to the company officials, the JV will entail design, production and erection of structural steelwork to principally service the Indian market. It will provide a unique service to the construction industry with steel being provided in an innovative and competitive manner.

UK-based Severfield Reeve Structures is a wholly owned arm of Severfield Rowen Plc.

Severfield Rowen Plc is UK and European market leader in structural steelwork.

Scrip of JSW Steel Ltd ended at Rs 254, plunged 7.34 percent on National Stock Exchange (NSE). The total volume of shares traded at NSE was 563,491.