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Wednesday, Jul 21, 2004

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Jindal Stainless makes $32-m buy in Indonesia

Our Bureau

New Delhi , July 20

JINDAL Stainless Ltd on Tuesday announced the setting up of its first wholly-owned subsidiary, PT Jindal Stainless Indonesia, and the subsequent acquisition of a running 50,000-tonne stainless steel cold rolling mill from PT Maspion Stainless Steel Indonesia on an asset acquisition basis.

The company Vice-Chairman and Managing Director, Mr Ratan Jindal, told reporters that the cost of the acquisition would be around $30 million-$32 million and another approximately $7 million-$8 million would be required for working capital.

"We also plan to increase the capacity to one lakh tonnes annually and that would require another $10 million. So the total cost would be around $50 million," he said.

Mr Jindal said the move is for forward integration and the company would export its hot rolled stainless steel made in India and cold roll it there to cater to the South-East Asian market, which is growing at around 10 per cent a year.

"Indonesia would help us, being strategically located for the neighbouring markets in the Philippines, Thailand, Vietnam, Malaysia and Myanmar," he said.

The plant is currently working at one-third of its capacity, with only one shift running and employs 150 personnel, Mr Jindal said; it has a total strength of 250.

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