Japanese Metal One seeks 5% stake in TATA Metallic JV
It is reported that Japanese trading giant Metal One Corporation has applied to the foreign investment promotion board for a 5% stake in a 3 party JV, the other 2 being TATA Metaliks and Japan's Kubota. TATA Metaliks will hold 51% in the JV while 44% stake will be held by Kubota and Metal One plans to invest INR 3.75 crore in it for a 5% stake.
The venture will allow TATA Metaliks to foray into the ductile iron pipes business. The project is likely to involve an investment of INR 150 crore. This manufacturing unit located at Kharagpur in West Bengal will use liquid pig iron from TATA Metaliks and is likely to become operational by the end of 2009. It would produce 0.11 million tonnes per annum initially.
While TATA Metaliks will bring its expertise in the manufacture and sales of ductile iron pipes, fittings and accessories, Metal One will primarily be a provider of supply chain and distribution network. The JV will be largely led by TATA Metaliks with Kubota as the technology partner. Kubota is one of the world’s largest ductile iron pipe makers.
For Metal One, this would be its second minority equity partnership in the Asian region. It acquired a 5% stake in Thai Metal Trade early in August 2007. Thai Metal Trade is Thailand’s largest hot rolled product service centre, steel distributor and manufacturer.
« Back
|