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ShareMumbai: JSW Steel plans to infuse Rs 50-100 crore into JSW Severfield Structures Ltd, its UK-based joint venture with Severfield Reeve Structures, also based in the UK.
A company official, on the condition on anonymity, said the company wants to buy an additional 25,000 shares of the JV for a sum of around Rs 50-100 crore.
The company will seek investor approval during its annual general meeting on Monday, the official told DNA. "One of the agendas that the company wants shareholders to pass during the AGM on Monday is this (equity infusing in the JV)," the official said.
An email sent to the company went unanswered.
JSW Building Systems, a JSW subsidiary, had last year formed the 50:50 JV with Severfield to set up a structural steelwork factory in the Bellary district of Karnataka.
The plant will manufacture pre-engineered steel and have a capacity of 35,000 tonnes.
The set-up is estimated to cost about Rs 250 crore. The company is currently giving finishing touches to its plans and has started placing orders for machinery and equipment.
In May, Anshul Singhal, president of JSW Building Systems, had said that the plant would start commercial production in July 2010.
Singhal had said, "The plan is to double production to 70,000 tonnes depending on the market condition and the demand for the product. Currently, we are entering with a very small capacity as the total size of domestic market is about 1 million tonnes of fabricated steel."
In November, Sajjan Jindal, vice chairman and managing director, JSW Steel, had said the company had planned four such plants in all.
