The Hindu Business Line : Visa Steel pact for ferrochrome plant in Orissa

Mumbai, Aug. 17 Visa Steel Ltd, an integrated special and stainless steel company, has entered into a joint venture with Baosteel Trading Company, China, and Visa Comtrade AG, Switzerland, for setting up a one-lakh TPA ferrochrome plant at Jajpur district in Orrisa.

The cost of the unit would be Rs 260 crore, to be financed through a 65:35 debt-equity mix.

A senior company spokesperson said the exact location of the plant and the schedule for commissioning could not been finalised as they were waiting for government approvals and other clearances.

Stake in SPV

A subsidiary of Visa Steel, Visa Bao Steel, would be established for the purpose in which Visa Steel would hold 51 per cent stake, Baosteel 35 per cent and Visa Comrade 14 per cent.

Baosteel Trading is a designated company of Baosteel Group Corporation for overseas investment in resource development to support the raw material requirements of Baosteel plants in China. It is said to be a large modern steel enterprise with a capacity of 24 million TPA of steel, including stainless.

Pact signed

The tie-up was inked on Friday in Shangai by Mr Vishal Agarwal, Managing Director, Visa Steel, with the associates, the company said.

Mr Vishambhar Saran, Chairman, Visa Group, said this would ensure a long-term market for the joint venture company, and a stable supply of ferrochrome for Baosteel’s stainless steel plant in China.

Visa Steel is currently operating a blast furnace with a production capacity of 2.25-lakh TPA of pig iron, a stamp charged coke oven plant of 4-lakh TPA and a chrome ore beneficiation plant and a chrome ore grinding plant with a capacity of 1-lakh TPA each.

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