September 08, 2008

JSL to set up SS slab plant in Russia - Report

Reuters reported that Jindal Stainless Limited is planning to spend USD 100 million building a plant in northwest Russia to produce 400,000 tonnes per year of stainless steel slab.

The report cited Mr Mahendra Agarwal chief representative of JSL in Russia as saying that construction of the plant is expected in the next few weeks. He added that "The land has been offered to us in the Leningrad region. Now everybody is working on the viability of the project and discussing it with equipment suppliers and banks."

Mr Agarwal said that the plant would supply most of its stainless slab to the Russian market to meet fast growing demand from the construction, shipbuilding and kitchenware sectors. He added that "We will give priority to the Russian market. Any surplus quantities will be sent to India. There is enough demand. Demand every year is growing."

He said that JSL would own 100% of the plant and that construction would require USD 100 million and a further USD 315 million in working capital would be invested. He added that Kingisepp, a town near Russia's border with Estonia, has been selected as the location of the proposed plant.