JSW Steel starts production at Dolvi Works facility

The steel major on Wednesday said it has commenced production of hot rolled plates from the new 5 million tonnes per annum (MTPA) hot strip mill facility at Dolvi Works (Maharashtra).

Separately, JSW Steel on Wednesday announced that it has entered into an assignment agreement dated 31 March 2021, whereby Laptev Finance, a JSW Group company, has assigned to JSW all rights and obligations of Laptev under the business transfer agreement dated 31 March 2019 as amended from time to time including the amendment dated 31 March 2021 executed by Laptev with Welspun Corp, for a consideration of Rs 1,00,00,000.

As per the business transfer agreement, Laptev had agreed to acquire from Welspun, as a going concern on slump sale basis, the business of manufacturing of high-grade steel plates and coils (PCMD Business), for a consideration of Rs 848,50,00,000, which is subject to closing adjustments towards net working capital.

As a part of the transaction, JSW shall also purchase a parcel of land pertaining to PCMD Business from Welspun Steel for Rs 1,50,00,000. The consideration amounts will be paid on a deferred basis, subject to Welspun fulfilling certain regulatory approvals and payment milestones as provided under the business transfer agreement.

Subsequent to the assignment of the business transfer agreement to JSW, Welspun has transferred the PCMD Business to JSW as on 31 March 2021.

Shares of JSW Steel advanced 3.35% to Rs 483.50 on BSE. The scrip hit an all-time high of Rs 484.45 in morning trade.

JSW Steel, a flagship company of the JSW Group, is an integrated steel manufacturer.

Shares of Welspun Corp rose 3.27% to Rs 143.70 on BSE.

Welspun Corp offers pipe solutions with a capability to manufacture line pipes, along with specialized coating, double jointing and bending.

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