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JSW Steel signs pact to buy Aferpi for Rs 600 cr from Algeria's Cevital

Press Trust of India  |  New Delhi 

today inked a pact with Algeria's to buy its Italian arm for around Rs 600 crore, a source in the know of the development said today.

The Sajjan Jindal-owned firm had earlier tried to acquire the second largest plant in in 2014, when it was known as The Algerian conglomerate however acquired and renamed it Acciaierie e (Aferpi).

"has signed a deal with Algeria's to buy Italy's second largest firm for around Rs 600 crore on Friday," the source who did not wish to be quoted said.

According to the source, senior officials of are in and the agreement document was signed at

While refused to comment on the development, an email query sent to Cevital remained unanswered.

The acquisition will help JSW to expand its reach in the specialised steel market, particularly in the automobile sector.

makes a of quality and special steel for rails, wire rods and bars for railway, automotive, earthmoving vehicles, energy, fastening, springs and welding.

At present, it is working on projects that involve production of 1 million tonne (MT) of and revamping of wire rod and bar mills, installation of one of 1 MT capacity with two continuous casting machines.

Besides, it is working on installation of a new rails- and beams-rolling plant and installation of the second and the third continuous casting machine.

is planning to increase its to 40-45 million tonne by 2030 from the present 18 million tonne.

"If the country builds 300 MT capacity by 2030, we would like to plan accordingly to maintain our 15 per cent share, which will be 40-45 MT," had said earlier.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 18 2018. 15:20 IST