Arcelor and Jindal subsidiaries form joint venture in India

Arcelor and Jindal subsidiaries form joint venture in India

Arcelor group's subidiary Imphy Ugine Precision (IUP) and Indian producer Jindal Steel's subsidiary SAW Pipes Ltd. have agreed to form a joint venture to produce high quality stainless steel and nickel alloy precision strips. According to market sources, the two groups plan to build a plant in Rohad near New Delhi for a cost of approximately $12 million. The plant will have a staff of about 200 people and an annual production capacity of 13'000 tons. The mill will produce stainless strips for use in textile machinery, clocks, watches and electrical equipment. Arcelor's IUP division will have a 27% stake, while Jindal's SAW Pipes division will own the remaining shares. The new joint venture will be called IUP-Jindal Hexa Metals and is expected to be operational by the end of June 2005.