Visa Steel to set up joint venture with BaoSteel in Orissa
20 May 2010
According to Visa Steel, chairman V Saran, Visa Steel, is in joint venture with BaoSteel Resources of China for setting up a ferrochrome project in Orissa. It is also is exploring other opportunities.
Addressing a press meet after announcing Visa Steel's results, Saran said the joint venture, Visa Bao, with Visa Steel holding a 65-per cent stake and BaoSteel Resources holding the remaining 35 per cent, would serve as a special purpose vehicle for BaoSteel to gain entry in other areas.
According to company official BaoSteel was also interested in securing raw materials. Company officials said that Visa Bao also had plans for a chrome beneficiation plant and pelletisation facilities even as it sought go in for backward integration into mining of chrome ore.
According to company managing director, Vishal Agarwal there were indications that besides value-addition projects, BaoSteel was interested in backward and forward integration projects.
Saran added that for the 1-lakh tonne ferrochrome project at Kalinganagar ordering had been completed for Rs60 crore.
On its own, Visa Steel is putting up a fully-integrated 1.5-million-tonne special and stainless steel plant. The plant will also be located at Kalinganagar, with the first phase involving 5 lakh tonnes set to go on stream by December.