Indian steelmaker JSW Steel Ltd has announced that it has signed a joint venture agreement with Japanese trading company Marubeni-Itochu Steel Inc. (MISI) to build a state-of-the-art steel processing center in northern India, under the name of JSW MI Steel Service Center Pvt. Ltd.
Both parties will hold 50 percent equity in the joint venture. The project will cost INR 1.22 billion ($24.8 million), 50 percent of which will be funded through equity and 50 percent through banks.
According to the JSW Steel statement, the first phase of the project is expected to come on stream in FY 2012-13 with an initial installed capacity of 180,000 mt per annum. The joint venture company will process flat steel products such as hot rolled, cold rolled and coated products for automotive, white goods, construction and other value-added sectors.