Essar Steel completes two acquisitions

Essar Steel completes two acquisitions

Indian steel producer Essar Steel announced yesterday that it had completed the acquisition of Hy-Grade Pellets Limited (HGPL) and Steel Corporation of Gujurat Limited (SCGL) from UK-based Stemcor Ltd. These two acquisitions, which collectively cost $450 million, have allowed Essar Steel to become a wholly integrated steel producer. HPGL, which operates a 4 million-ton iron ore pellet plant in Visahapatnam, will provide Essar with high quality raw materials. On the other end, SCGL, which has 1.2 million tons of cold rolling capacity, will provide value addition for Essar's steel output.