BS reported that Shyam Steel Industries has announced the takeover of majority shares in Beekay Steel, which owns a medium scale steel plant at Barbil in Orissa,

Through this acquisition, Shyam Steel expects to get a foothold in Orissa’s steel sector as Beekay Steel has a standing MoU with the state government for production of 280,000 tonne of steel per annum at its present facility.

Shyam Steel management declined to disclose the acquisition cost though they shared the plans for future expansion of the newly acquired plant.

Mr Lalit Beriwala director of Shyam Steel Industries told BS that “Shyam Steel expects to invest INR 365 crore in the Barbil plant by 2012 with a 40 MW captive power plant, capacity expansion of DRI to 1 million tonne and Billet to 1 million tonne along with establishment of a coal washery.”

He said, the plant hopes to get its iron ore from a captive mine that belonged to Beekay Steel earlier under an MOU it had signed with the Orissa government in 2005.

(Sourced from BS)