Jindal to set up stainless steel plant in Russia

Mumbai: Jindal Stainless Ltd, the country''s largest stainless steel producer, will build a 4-lakh tonnes per year stainless steel slab plant in north-west Russia, with investment of $100 million, reports quoting the company''s representative in Russia said.

Construction of the plant, to be 100 per cent owned by Jindal Stainless, would take one year from final approval, expected in the next few weeks, the report said.

The plant would be located in Kingisepp town in Leningrad region, near Russia''s border with Estonia, about 140 km west of St Petersburg.

The company expects to sell most of its production to the Russian market to meet fast-growing demand from the construction, shipbuilding and kitchenware sectors.

Jindal is currently working out the project''s viability and bankability as also equipment suppliers, the report said. In addition to the $100 million required for fixed capital investment, the project would require a further $315 million in working capital.

Jindal already supplies about 1,500 tonnes of cold-rolled stainless sheet and hot-rolled plates every month to Russia.

Russia produced 127,400 tonnes of stainless steel last year, about the same amount it produced in the year 2000. Russia is targeting stainless steel output of about 900,000 tonnes by 2011.