By the first quarter of 2013, Visa Steel expects to set up a joint venture coke manufacturing firm in collaboration with American firm SunCoke Energy Inc.
SunCoke Energy Inc, which is one of the largest independent producers of metallurgical coal across North and South America, is said to have entered into an agreement with Visa in this regard.
According to the agreement, which requires approval of shareholders of Visa Steel, SunCoke Energy will have a 49 percent stake at an investment of $67 million (or Rs 368 crore) in the venture, with the balance to be held by Visa Steel.
The joint venture would be formed by hiving off Visa Steel’s coke making operations into Visa Coke, a special purpose vehicle (SPV).
The deal marks the first major foreign investment in the domestic coke making industry and it will offer SunCoke Energy a strong foothold in India’s fast growing market.
To start with, the joint venture will comprise Visa’s existing four lakh tonne per annum heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha.
Fritz Henderson, Chairman and Chief Executive Officer, SunCoke Energy said he was pleased to partner Visa Steel to expand his firm’s international footprint and establish a coke making presence in India.
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