SunCoke Energy, to st up Indian venture with Visa Steel
20 Mar 2013
SunCoke Energy, the largest independent producer of metallurgical coke in the Americas and Kolkata-based Visa Steel, yesterday launched their 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 the venture, to be called Visa SunCoke, while Visa Steel will hold the remaining 51 per cent and bring in its 400,000 MT per annum heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha.
SunCoke and Visa Steel will co-manage the business with equal representation on the company board.
''This partnership marks a key milestone in SunCoke Energy's international growth strategy. By teaming with Visa Steel, SunCoke is entering India with the wisdom and experience of a premier and highly regarded local partner,'' said Frederick ''Fritz'' Henderson, chairman and CEO of SunCoke Energy.
Vishambhar Saran, chairman of Visa Steel said, ''We are pleased to finalise our partnership with SunCoke and it's a great opportunity for VISA SunCoke to leverage its operating and technological expertise to serve customers across India with the highest quality coke.
The coke industry in India is a key market that offers attractive growth opportunities and we believe that VISA SunCoke is well-positioned to grow its coke business and become an industry leader.''
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.
Visa Steel also holds a 65-per cent stake in Visa Bao Ltd, a joint venture with China's Baosteel.
With a market cap of $1.1 billion, Illinois-based SunCoke mines for metallurgical and thermal coal used in steel making.
Its coke making facilities are located in Virginia, Indiana, Ohio, Illinois and Vitoria, Brazil, while its coal mining operations, which have more than 100 million tons of proven and probable reserves, are located in Virginia and West Virginia.
The company reported net income of $98.8 million in 2012 on revenues of $1.9 billion.
