JSW forms joint venture with U.K.’s Severfield
A wholly owned subsidiary of JSW Steel, JSW Building Systems, has announced to form 50:50 joint venture with Severfield Reeve Structures. Severfield Reeve Structures is a UK based company, a wholly owned subsidiary of Severfield-Rowen. It is known for high quality structural steel across the world.
JSW Severfield Structures, the new joint venture would form a new utility in the Bellary district of Karnataka at the Jindal Vijayanagar Steel plant complex. It would work on design, production and erection of structural steel work needs of the Indian market. The JVC would initially start with an initial capacity of 35,000 tonnes annually, with investment Rs 220 crore. Required funds would be raised through a mix of debt and equity in the ratio of 2:1.
JSW Steel Vice Chairman and Managing Director, Sajjan Jindal said that there is a good scope for steel industry in India as higher use of steel is becoming popular in the country. Industry also prefers steel structure due to its durability, aesthetics and its time saving. The joint venture would further strengthen JSW position in the market. The company has also proposed more steel plants near Delhi and Mumbai to reduce transportation costs.