JSW Steel acquires WELSPUN Maxsteel

JSW Steel Ltd plans to complete the purchase of its smaller competitor Welspun Maxsteel within a month. This will be a step forward in terms of increasing throughput for JSW, according to official sources for the company.

JSW intends to buy WELSPUN at about Rs 110 million and will take on WELSPUN Maxsteel's current debt of about Rs 103 million. (1 USD = 60.075 INR) JSW Steel is the third largest steel company in India after Tata Steel Ltd and Steel Authority of India Ltd (SAIL). The company has a production steelmaking capacity of about 14.3 million tons.

The company is currently on the way of expansion, and negotiations are also underway with Italy's Lucchini SpA, which is mired in debt but may in the future be a stepping stone to the recovery of the European economy. JSW is also the main holding company of Indian steel trader Stemcor in the UK.

Welspun Maxsteel previously produced sponge iron for its Grasim Industries unit of the Aditya Birla Group, which was acquired by the WELSPUN Group in 2009 for $ 3 billion. It is located in the Maharashtra area and spread over 435 acres. There is a port here. The company's facilities provide a production capacity of about 900 thousand tons per year and produce both hot briquetted iron and direct reduced iron.