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New venture: (from Left) Mr Rajesh Shah, Co Chairman & Managing Director, Mukand Ltd; Mr Peter Goovaerts, Global Product Market Manager, Bekaert; Mr Niraj Bajaj, Chairman & Managing Director, Mukand Ltd; and Mr Arnold Camelbeke, Managing Director, Bekaert at a press conference in Mumbai on Wednesday. - Paul Noronha

Our Bureau

Mumbai, Sept 5 Mukand Ltd has signed a MoU with Belgium-based NV Bekaert SA to produce steel wires.

The 50:50 joint venture, at an investment of Rs 100 crore, will come up at Lonand, near Satara, in Maharashtra.

Stainless steel wires are used for applications such as welding, weaving and for manufacturing springs.

Bekaert is said to be the largest global producer of steel wires with manufacturing facilities in 26 locations worldwide.

It has a facility in Pune that produces steel cords for radial tyres and carding products for the textile industry.

Mr Rajesh Shah, co-Chairman of Mukand, said the proposed plant, on a 25-acre MIDC plot, would have a capacity of 12,000 tonnes a year and would be operational in 24 months.

The production would largely cater to export requirements.

Mukand manufactures about 400 grades of long steel products in the form of rods, bars and bright bars, besides steel alloy wires.

Mr Niraj Bajaj, Chairman of Bajaj, said that the global wire market was about one million tonnes, of which the speciality segment targeted by Mukand was 10-20 per cent.

On the ongoing capacity expansion in Mukand, he said that the Rs 300-crore exercise to boost capacity from three lakh tonnes to 5.4 lakh tonnes would be completed this year.

Mr Arnold Camelbeke, Managing Director of Bekaert, said that the company provides Indian customers with a variety of wire products and advanced materials for the automotive industry and filteration applications.

The agreement with Mukand would help double Bakaert’s global capacity for stainless steel wires, he added.

Mukand’s decision to focus on exports resulted in 47 per cent growth in export revenue to Rs 38 crore in the first quarter.

The export target for 2007-08 has been pegged at Rs 205 crore, against Rs 137 crore clocked in 2006-07.

In the long term, the company is looking at Rs 1,000 crore direct exports in 2009-10.

On Wednesday on the BSE, the company’s shares gained 1.53 per cent to close at Rs 82.70.

More Stories on : Alliances & Joint Ventures | Steel | Overseas Investments

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