Tatas interested in SAIL Salem JV

Tatas interested in SAIL Salem JV
UNITED NEWS OF INDIA

CALCUTTA, FEB 19: The Tatas are one of the four steel companies willing to become joint venture partners for SAIL's Salem Steel Plant (SSP) in Tamil Nadu.

Merchant bankers J M Morgan Stanley, appointed by SAIL as financial consultants for the proposed JV and to act as advisor in selecting a suitable partner, have informed that expression of interest has been shown by two Indian companies and one each from Germany and the UK.

The Indian companies are Tisco and Jindal Strips and SM's Demag of Germany and Avesta Sheffield of the UK, IT said and added that protracted process of 'due deligence' would now be initiated.

SAIL had recently through a global tender sought expression of interest from steel companies with a global standing in quality steel production and a long, continued presence in international marketing, for joint venture options for steel making facilities and for SSP as a whole with backward integration facilities.

SSP has been catering to domestic market segments which require high quality stainless steels and exporting 30 to 40 per cent of its production for a number of years.

The plant has established for itself, both an image as a quality producer as well as a share in the international market for stainless steels.

Ministry of steel had sought the government of India's approval for restructure of SSP as a joint venture subsidiary of SAIL with facilities for 'in Situ' steel making and slab casting, which was given a final seal of approval very recently.