Laptev Transfers Plate & Coil Business of Welspun to JSW Steel
JSW Steel Ltd announced that it has completed the acquisition of Welspun Corp’s high-grade steel and coil business, two years after the deal was signed.
JSW Steel Ltd announced that it has completed the acquisition of Welspun Corp’s high-grade steel and coil business, two years after the deal was signed. JSW Steel Limited and Laptev has entered into an Assignment Agreement dated 31 March 2021, for the assignment of all the rights and obligation of Laptev in favour of JSW, under the Business Transfer Agreement executed between Laptev and Welspun Corp Limited on 31 March, 2019 and amendments thereon including the amendment dated 31 March 2021 executed for a consideration of INR One Crore only and applicable taxes. As per the Business Transfer Agreement, Laptev had agreed to acquire from Welspun, as a going concern on slump sale basis, the business of manufacturing of high-grade steel plates and coils PCMD Business for a consideration of INR 848.50 Crores, which is subject to closing adjustments towards net working capital. Subsequent to the assignment of the Business Transfer Agreement to JSW, the closing has occurred on 31 March 2021 and consequently Welspun has transferred the PCMD Business to JSW as on 31 March 2021.
As a part of the transaction, JSW shall also purchase a parcel of land pertaining to PCMD Business from Welspun Steel Limited for INR One Crore Fifty Lakhs. The consideration amounts will be paid on a deferred basis, subject to Welspun fulfilling certain regulatory approvals and payment milestones as provided under the Business Transfer Agreement.
Welspun on March 31, 2019, announced the sale of its plate, coil mill and power divisions. While Welspun sold its plate and coil mill division to Laptev Finance, the power division, comprising 43 megawatts in generation capacity, was sold to Welspun Captive Power Generation. The competition regulator approved the proposal in November 2019.
Commissioned in September 2007, with an annual rolling capacity of 1.5 million tonnes, Welspun’s Plate and Coil Mill division has been in the mainstay in API line pipe standard, producing high grade steel plates, coils and also supplying commercial grade products in thickness range of 8-140mm in 1500-4500mm widths & length of 6000-18000mm with maximum single plate weight of 35 tonnes. The plates and coil mill division will be of strategic importance for JSW Steel to expand its value-added and special products portfolio, particularly plate mills in which the company has so far not been present
Plate & Coil Mill Facilities
200 Ton Stein Heurtey Digital Re-heating furnace with Level-2 model
11MW Single stand Reversible Steckle Mill attached with Vertical Edger
60 meter long accelerated cooling system
2500 KW Down coiler
60 Meter Long plate cooling bed
100 % Body UT Machine
Edge Milling Machine
Material Testing Laboratory
Bogie Hearth Normalizing Furnace