Visa Steel, SunCoke to form coke−making joint venture

Last Updated: Tue, Nov 20, 2012 17:40 hrs

Kolkata, Nov 20 (IANS) Visa Steel, a leading player in the Indian special steel industry, has entered into an agreement with US−based SunCoke Energy to form a coke−making joint−venture in India.

According to the agreement, SunCoke, which operates coke−making facilities that produce over five million tonnes of metallurgical coke per year for integrated steelmakers, will invest approximately Rs.368 crore ($67 million) to acquire a 49 percent stake in the joint venture.

Visa Steel will hold the remaining 51 percent stake.

"The joint−venture, which will be unlevered at closing, will be comprised of Visa Steel's existing 400,000 MT per annum heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha," Visa Steel informed the Bombay Stock Exchange (BSE) Tuesday.

The transaction is expected to close in the first quarter of 2013.

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