Indian steel giant Steel Authority of India Limited (SAIL) has announced that it has formally acquired 50 percent of the shares of Steel Complex Limited (SCL), owned by the government of the southwestern Indian state of Kerala, and that it now manages its operations.
Accordingly, the new SAIL-SCL Ltd joint venture (JV) company which has resulted from the acquisition will set up a new rolling mill of 65,000 mt per annum capacity for the production of high grade thermo mechanically treated (TMT) steel bars at an estimated investment cost of INR 450 million (about $10 million).
As SteelOrbis previously reported, in May 2008 the Kerala government and SAIL signed an MoU for the revival of SCL, with the JV agreement being signed between the parties in December 2008.
Subsequent to fulfillment of the conditions of the agreement, the JV became operational in December 2010. Operations of the JV will be synergised with SAIL's core strengths by installation of a billet conversion facility, raw material tie-ups and the marketing of SCL products by SAIL.
SAIL-SCL Ltd presently has the capacity to produce 55,000 mt of liquid steel per annum through the electric arc furnace route and 50,000 mt of concast billets per year.