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JSW Steel to establish greenfield unit in Georgia
By siliconindia
|
Tuesday, 17 June 2008, 19:30 IST
Mumbai: JSW Steel has amalgamated a 49:51 joint venture with U.K.-based trader to put up a greenfield facility to produce long products in the Republic of Georgia, entailing an investment of $42 million.
The company would have an initial production capacity of 1.75 lakh tonnes and the plant would be commissioned in the current fiscal. JSW Steel will invest in the joint venture a below $7 million, which would be funded through a 2:1-debt-equity mix. "The debt portion has already been tied-up and work on the project started," said Rao.
"Georgia is an exciting place. It consumes half-a-million tonne steel a year and is entirely dependent on imports. However, it exports scrap, but does not make finished steel," he said. Rao finds that Georgia is also a good source for cheap hydropower and, thus, along with local availability of scrap, steel making will be economical.
The company would invest 
14,000 crore by 2010 to jack up its steel making capacity to 11 million tonnes a year from 4.8 million tonnes now.
14,000 crore by 2010 to jack up its steel making capacity to 11 million tonnes a year from 4.8 million tonnes now.