Visa Steel forms JV with SunCoke Energy

Kolkata-based steel company Visa Steel today announced the official formation of joint venture, US listed SunCoke Energy, in which US-listed SunCoke Energy has invested Rs 368 crore for 49% stake.

The company in a statement said in the board meeting the JV, VISA SunCoke Limited is formalised and Visa Steel will hold a 51% stake and SunCoke Energy will hold remaining 49% stake.

"SunCoke Energy has invested approximately Rs 368 crore to acquire 49% stake in the joint venture," the statement added.

The joint venture comprises a 400,000 metric tonne per annum heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha.

"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 chairman Vishambhar Saran said.

"SunCoke Energy is entering India with the wisdom and experience of a local partner. As infrastructure, housing and transportation needs accelerate in India, local steel making companies will require high quality coke and Visa SunCoke is prepared to be their supplier of choice, SunCoke Energy chairman and CEO Frederick 'Fritz' Henderson said.

Both the groups will have equal representation in the board of the JV company.