The Hindu Business Line : Kalyani Steels signs pact with Gerdau of Brazil

As per the agreement, both companies will own 45 per cent equity in SJK Steel Plant Ltd, while other investors will own the remaining equity, a statement issued by the company said.

Spread over 900 acres at Tadipatri, Andhra Pradesh, SJK Steel Plant Ltd is an integrated alloy steel plant with an annual capacity of 275,000 TPA that was acquired by Kalyani Steels recently.

The Kalyani Gerdau joint venture plans to enhance its capacity to 1.6 million TPA of finished steel, in the next few years.

"This is the Gerdau Group's first step into Asia and reinforces our strategy of being one of the agents in the consolidation process of the world steel business. Our partnership with the Kalyani Group is essential for the success of our business because it brings new knowledge about the local market and culture," said CEO Mr André Gerdau Johannpeter. Commenting on the joint venture, Mr B.N. Kalyani, Chairman, KSL said, "We are very happy to partner the Gerdau Group in their first steel venture in Asia."

The Gerdau Group is a Brazilian steel company that is now the 15th largest international steel producer. In 2006, it produced 15.6 million tonnes and had gross revenue of $27.5 billion. It has 32,000 employees and is present in Argentina, Brazil, Canada, Chile, Colombia, the US, Spain, Mexico, Peru, Dominican Republic, Uruguay and Venezuela.

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