Indias Jindalai plans to invest in stainless steel smelters in Indonesia
Posttime：2024-05-10 Views：4918
According to CNBC on May 1, 2024, in order to become one of the worlds largest steel producers, Jindalai Stainless Steel has announced a major expansion and acquisition plan worth nearly 54 billion Indian rupees to enhance its smelting and downstream capacity. These investments will be made within the next two years.
Jindalai Stainless Steel Company stated in a statement that it has partnered with Indonesia to develop and operate a stainless steel smelter (SMS) in Indonesia with an annual production capacity of 1.2 million tons (MTPA). This will increase the companys smelting capacity by over 40%, reaching 4.2 million tons.
Secondly, Jindalai Stainless Steel has invested INR 19 billion to continue expanding its downstream production line in Jajpur, Orissa to improve its smelting capacity. In addition, the company has allocated INR 14.5 billion to invest in infrastructure upgrades such as railway dedicated lines, sustainable development related projects, and renewable energy generation. Thirdly, the company will acquire a 54% stake in Chromeni Steels Pvt. Ltd (CSPL) through a structured indirect acquisition transaction. The company owns a stainless steel cold rolling plant located in Mondra, Gujarat with an annual production capacity of 600000 tons. These transactions require an expenditure of approximately INR 13.4 billion, including taking over existing debt of approximately INR 12.95 billion and using the balance of approximately INR 450 million for equity purchases.
At a press conference, Abhyuday Jindal, Managing Director of Indias Jindal Stainless Steel, said, "Through these acquisitions and investments, we have developed a clear growth plan to become one of the worlds leading enterprises. The Indonesian joint venture will provide us with the best speed and raw material assurance, while the expansion of the Japur production line will provide higher value for domestic and export customers. Chromenis cold rolling plant will expand our business scope in India and overseas, and strengthen our influence in the value-added field in the long run."
The statement added that Indias Jindalai stainless steel has an annual turnover of 4.3 billion US dollars or 3.57 trillion rupees, and an annual melting capacity of 3 million tons.
