November 17, 2005
Tata Steel and BlueScope Steel dedicate site of new metallic coating and painting facility at Jamshedpur
Further to the announcement of forming a new joint venture company in India between Tata Steel and BlueScope Steel, a dedication ceremony for the proposed state-of-the-art metallic coating and painting facility was held at Bara in Jamshedpur. Arjun Munda, the chief minister of Jharkhand, unveiled the site dedication plaque along with B Muthuraman, MD, Tata Steel.
Speaking on the occasion, the chief minister, Arjun Munda, said that the setting up of the new facility by Tata Steel and BlueScope Steel is indicative of Tata Steel’s commitment to the development of the state.
B Muthuraman, managing director, Tata Steel, said, “Tata Steel and BlueScope Steel share a similar approach to value creation in the steel business. Consumers would benefit from the range of solutions that will now be available to the buildings industry. This JV combines the strengths of the two organisations and will increase the use of value added steel products.”
Present at the occasion were senior executives from BlueScope Steel Australia and Tata Steel. The new facility will have an annual metallic coating capacity of 250,000 tonnes and paint line capacity of 150,000 tonnes. The new facility is expected to be operational by 2008. The capital cost of the joint venture will be approximately Rs1,400 crore. The investment is consistent with the company’s strategy of growing its downstream value-added products business in Asia.
The joint venture company will build a new business across India and South Asia that will manufacture zinc/aluminium metallic coated steel, painted steel and rollformed steel products, and deliver pre-engineered buildings (PEBs) and other building solutions. The head office will be located in Pune and the 50:50 joint venture agreement will be officially signed at a ceremony later this month.
The decision to proceed
with the development of a metallic coating and painting
facility followed completion of a rigorous 12-month
feasibility study jointly undertaken by Tata Steel and
BlueScope Steel representatives. The study confirmed
the significant market opportunity to take the leadership
position in quality coated and buildings solutions within
South Asia. India is one of Asia’s fastest growing
economies with the world’s second largest population