Mumbai:
The strategic merger between India Seamless Metal Tubes
Ltd (ISMT) and Indian Seamless Steels and Alloys Ltd (ISSAL)
will create the largest integrated precision seamless
tube manufacturing company in the Asia Pacific Region.
The merged company is proposed to be named as ISMT Ltd.
The
Mumbai High Court has convened a shareholders' meeting
of both companies to approve the merger on on 1st August,
2005. ISMT is proposed to be merged into ISSAL and the
shareholders of ISMT will be offered five equity shares
in ISSAL for every four shares held in ISMT.
The
merged entity will have a wide range of precision seamless
tubes for 'tier I' suppliers of auto, bearing, and other
engineering OEM's. It will continue using its surplus
capacity to
manufacturing specialised steels for engineering sector
buyers of forging, auto component, mining and other industries.
With
an in-house raw material source, the company would be
able to achieves higher stability in cost and profitability
and is able to position itself better with the international
OEMs.
The
155,000-tpa tube capacity of the company is planned to
be increased to 200,000-tpa. The 190,000-tpa steel capacity
has already been exceeded (the company manufactures 240,000
tpa) | 
