Indian Metals and Ferro Alloys limited (IMFA) has signed a definitive agreement to acquire Tata Steel limited's ferrochrome plant at Kalinganagar in the eastern state of Odisha for a consideration of $68.77 million, the company said in a statement on Wednesday, November 5.
The deal will increase furnace capacity by 99 MVA (megavolt-amperes) (66 MVA and 33 MBA). MVA is under construction), making IMFA the largest ferrochrome producer in the country and the sixth largest in the world with a total capacity of over 500,000 tonnes, the company said.
Subject to the agreed conditions and necessary approvals, the transaction is expected to close within three months.
The acquired facility, spread over 115 acres in Kalinganagar, consists of four furnaces capable of producing 100,000 tons per year, and this capacity will increase to 150,000 tons per year when the fifth furnace comes online, the company said.
The acquired facility is located close to the company's own chrome ore mines, and the upcoming expansion of new deposits will result in significant cost savings and operational synergies, the company added.
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