Mesco Steel has bought out debt-laden steel maker Maithan Ispat for Rs 1,160 crore. This follows an agreement Rita Singh-promoted Mesco signed with South Korean steelmaker Posco last week.
The acquisition includes Kalinganagar-based Maithan Ispat's debt, which Mesco will repay over two years.
This provides Mesco an opportunity to use its pig iron in Maithan's billets and beam facilities. "We will be investing in fresh equity and debt to add a 0.7 million tonne electric arc furnace, for which Maithan already has environment clearance.
This acquisition provides us with a wonderful synergy, whereby we raise our own capacity to 2.2mt," Singh told ET. The company is betting on the Narendra Modi government's infrastructure push, and believes it will find a ready market for beams and section beams produced at Maithan.
Source: ET
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
![Steel Insights](/assets/images/news/coal-insights.jpg)
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
![Steel Insights](/assets/images/news/ICMW_Jan09.gif)
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
![Steel Insights](/assets/images/news/ISMW.gif)
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
![Steel Insights](/assets/images/news/SteelInsights.jpg)
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.