Indian Metals and Ferro Alloys Limited (IMFA) has signed a definitive agreement to acquire Tata Steel Limited’s ferrochrome plant at Kalinganagar in the eastern state of Odisha for a consideration of $68.77 million, a company statement said on Wednesday, November 5.
The deal will add 99 MVA (mega volt amperes) furnace capacity (66 MVA existing and 33 MVA under construction), making IMFA the country’s largest ferrochrome producer and the sixth-largest globally with total capacity in excess of 500,000 mt, the company said.
Subject to the satisfaction of agreed conditions and requisite approvals, the transaction is expected to close within three months.
Spread across 115 acres in Kalinganagar, the facility being acquired consists of four furnaces capable of producing 100,000 mt per year, which will further increase to 150,000 mt per year once the fifth furnace is commissioned, the company said.
The acquired facility is close to the company’s captive chrome ore mines, and the upcoming greenfield expansion will lead to significant costs savings and operational synergies, it added.