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| Bhushan, Sumitomo ink 2 pacts; may sell 40% in WB plant |
| Press Trust of India / New Delhi Dec 16, 2009, 18:21 IST |
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Secondary steel producer Bhushan Steel today entered into a technical and marketing agreement with Japan's Sumitomo Metals and is also considering selling up to 40 per cent stake to the foreign partner in its proposed plant in West Bengal.
"The company has signed two agreements with Sumitomo Metal Industries. One for technical know-how and another for a marketing tie-up for selling the produce from the Orissa plant," Bhushan Steel Managing Director Neeraj Singal told reporters here today after inking the deal.
Bhushan Steel will commission 2.2-million tonne per annum (MTPA) steel unit in Orissa by next month and plans to ramp up the capacity of this plant to 5 MTPA by October 2012.
Sumitomo, an integrated steel company with presence in both the upstream and downstream areas, aims to rival global firms like ArcelorMittal, JFE Steel to sell special steel products from the Orissa unit to Japanese auto-makers like Toyota in India under its own brand.
In West Bengal, Bhushan plans to set up a 6-MTPA plant in two phases and is in talks with Sumitomo to sell up to 40 per cent stake in the proposed unit and is expected to conclude a deal in this regard by mid-2010.
"We are in talks to sell 26-40 per cent stake in the proposed plant in West Bengal to Sumitomo which will also help us in part-funding the Rs 20,000-crore first phase of the project," Singal said.
The New Delhi-based Bhushan plans to set up a 3-MTPA unit in the first phase of the West Bengal project at Asansol for which it requires about 2,500 acres.
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