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– Paul Noronha

Mr Toby Hayward (left), Non-Executive Chairman, Severfield Rowen Plc, and Mr Sajjan Jindal, Vice Chairman and Managing Director, JSW Steel, at a press conference in Mumbai on Monday.

Our Bureau

Mumbai, Nov. 17 JSW Steel has entered into a joint venture with UK-based Severfield Reeve Structure through its wholly owned subsidiary, JSW Building Systems, to make structural steelwork for construction.

The joint venture company, JSW Severfield Structure Ltd, will set up a 35,000-tonne manufacturing facility at Bellary, where JSW works is located, with an investment of Rs 220 crore. The debt-equity ratio would be 2:1.

The project is expected to begin in February and will be completed in 18 months. Turnover at full capacity will be close to Rs 400 crore.

JSW would offer steel and market expertise and Severfield its competence in design, manufacturing and fabrication. Focus will be on the commercial segment such as airports, malls, and other infrastructure projects.

Europe is said to have 70 per cent buildings made of steel and the US about 50 per cent, while it is between five and seven per cent in India.

Mr Sajjan Jindal, Vice-Chairman and Managing Director, JSW Steel, said, “Indian corporates are increasingly implementing large projects using steel buildings due to the distinct advantage of savings in construction time, enhanced aesthetics and durability. The joint venture business will consume steel plates and galvanised products, thus providing an added value route for JSW Steel.”

Mr Jindal said steel structure permitted large spans and swift construction. Real estate developers too could benefit as it provided more floor space index as shell structures, besides being lighter, would occupy less space.

Mr Ansul Singhal, CEO, JSW Building Systems, said essentially steel buildings would have the foundation and core structure in concrete with the basic shell or skeleton made of steel. The walls could be concrete or any other composite material.

Asked why the project was being taken up in the present economic scenario, Mr Tom Haughey, CEO, Severfield-Roven, said the venture would be on stream in 18 months and things hopefully would look up by then, besides there was huge untapped potential in India.

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

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