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Our Bureau

Kolkata , Oct. 23

STEMCOR, a UK-based steel trading major, appears to be on an equity acquisition drive in India through its local arm, Stemcor India Pvt Ltd.

The company is already in talks with the Mesco group and has decided to pick up equity stake in the Orissa-based Mideast Integrated Steel Ltd, popularly known as Mesco Steel.

According to Mr W.J. Attenborough, Managing Director (Middle East-South Asia), Stemcor UK Ltd, his organisation would also be picking up equity stake in a tinplate container manufacturing company.

However, he refused to give details, only stating that a formal announcement is likely to be made within the next three months.

Mr Attenborough was talking to newspersons on the sidelines of Steel Metallics India 2005. According to him, everything depends on the time likely to be taken by the legal divisions.

On the equity participation in Mesco Steel, he said that neither the price nor the size of the equity had been finalised. Mesco Steel is currently setting up a six-lakh-tonne steel unit at Jajpur in Orissa.

He also ruled out any greenfield steel project of Stemcor and further clarified that nowhere in the world had the company, which celebrated its 50th year in 2001, promoted such a steel venture. "We are only interested in picking up minority stake. We will not hold the majority stake."

On whether the company had identified any particular sector of the steel industry for equity acquisition, Mr Attenborough said that the company was looking at the steel sector in totality.

Over the years, Stemcor has become a major steel trader in India. Its annual business volume is approximately six million tonnes. It also engages in the export and import of raw materials for the steel industry.

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