Tubacex, a Spanish company engaged in the manufacture of stainless steel tubular solutions, has entered into an agreement to acquire 68 per cent stake in Prakash Steelage’s seamless stainless steel tube division.
The financial terms were not immediately disclosed.
The seamless stainless tube division employs about 250 people and has a turnover of about Rs 175 crore, the company said in a statement.
Prakash Steelage has an installed capacity of 20,500 MTPA spread across two plants at Umbergaon, Gujarat and Silvassa, Dadra Nagar and Haveli.
"The acquisition of a majority stake in the seamless stainless steel division of Prakash Steelage is a step towards strengthening our presence in Asia,” said Jesús Esmorís, Chief Executive Officer of Tubacex.
“The joint venture will be mutually beneficial for Tubacex and Prakash Steelage and is expected to reinforce the growth of the stainless steel seamless tubes and pipes division” said Prakash Kanugo, the Chairman and Managing Director of Prakash Steelage.
Published on February 13, 2015
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