BS reported that Chinese company Xinxing Group has formed a partnership with Indian investors Manasara Investments, Kelchandra Group and another global company Sigma Minmet Ltd to set up a 6 million tonne iron ore pellet plant in Karnataka for an estimated investment of INR 8,735 crore.
Xinxing Group and Sigma Minmet Ltd hold a combined 55% stake in Xindia Steels, the balance is held by the Indian promoters.
The newly formed company Xindia Steels Ltd will set up an iron ore pellet plant in Koppal district in North Karnataka in the first phase. A steel plant of a 2.5 million tonne capacity will be set up in the second phase which will also see the capacity of the pellet plant reaching 6 million tonne. The Koppal project also plans to produce 250,000 tonnes of iron pipes.
Mr Liu Mingzhong chairman of Xinxing Group said “This investment is in line with our strategy to be an active contributor to the emerging Indian steel industry. Xinxing has the products and the capability to produce them locally for the Indian market.”
Mr Alex Huang vice chairman of Xindia Steels Ltd said “There is a demand for the production of steel globally and in India. As per the National Steel Policy, the projected demand is about 200 million tonnes by 2020. We see a tremendous growth opportunity.”
According to Mr Gopi Ramanathan director of Xinidia Steel, the project is expected to provide employment to over 16,000 people in the local community both directly and indirectly over the first and the second phases. He added that “The first phase of the investment will meet the needs of the steel and sponge iron plants. The second phase of investments will bring in Xinxing’s steel technologies. Instead of exporting raw materials, Xindia will export finished products.”
