The Hindu Business Line : Tata Metaliks signs pact with 2 Japanese cos

Kolkata, July 20 Tata Metaliks Ltd has signed a joint venture agreement with Kubota Corporation and Metal One Corporation, both of Japan, for setting up a 1.1-lakh tonnes per annum capacity ductile iron pipe manufacturing plant at Kharagpur in West Bengal at an estimated investment of Rs 150 crore.

The proposed joint venture company will be called ‘Tata Metaliks Kubota Pipes Ltd’. It will be incorporated in Kolkata as a public limited company. Tata Metaliks will hold 51 per cent of the equity stake in the proposed joint venture while Kubota Corporation and Metal One Corporation will hold 44 per cent and five per cent of the balance equity stake, respectively. The debt equity ratio of the project has been pegged at 1:1.

Besides equity participation, Kubota Corporation will offer modern technology in ductile iron pipe manufacturing and provide guidance pertaining to best operational practices. Metal One Corporation’s association with Kubota in Japan is confined to exporting some of the latter’s products.

The ductile iron pipes manufacturing facility will be located at Kharagpur. It will use liquid pig iron from Tata Metaliks’ existing mini blast furnaces and is likely to be operational by the end of the fiscal 2008-09.

In the first phase, the installed capacity of the plant will be 1.1 lakh tonnes per annum. There will be scope for expansion of the installed capacity at a later date.

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