SunCoke Energy to invest Rs368 crore in cokemaking JV with Visa Steel
21 Nov 2012
Kolkata-based Visa Steel and SunCoke Energy, the largest independent producer of metallurgical coke in the Americas, yesterday agreed to form a cokemaking joint venture in India.
Under the terms of the JV, SunCoke will invest Rs368 crore ($67 million) to acquire a 49-per cent stake in JV to be called Visa SunCoke, while Visa Steel will hold the remaining 51 per cent by bringing in its 400,000 MT per annum heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha.
Vishambhar Saran, chairman of Visa Steel said, ''This is a great opportunity for Visa Steel to partner with SunCoke, known for its operating and technological expertise, to grow the coke business.''
''The demand for coke from large- and medium-size steel producers has been increasing substantially and there is a potential to grow the coke business on a standalone basis,'' he added.
''We are pleased to partner with Visa Steel, a company with strong leadership in the steel and coke industry, to grow our international footprint and establish a cokemaking presence in India,'' said Fritz Henderson, chairman and CEO of SunCoke.
Visa Steel is a leader in the special steel, coke and ferro chrome industry in India with manufacturing facilities located at Kalinganagar Industrial Complex in Odisha. The company recently transferred its business of manufacturing and sale of metallurgical coke and associated steam generation units to its subsidiary Visa Coke Ltd.