Indian Essar Group seeks to partner with local co in setting up hot-strip steel mill

FE Team | Published: August 28, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Refayet Ullah Mirdha
The Essar Group of India has shown keen interest in setting up a hot-strip steel mill under joint venture with similar local companies in Bangladesh to meet the growing demand for raw materials for the local steel and re-rolling mills.
In an investment proposal the Essar has informed that it has been seeking participation of local cold rollers to establish the joint venture project worth US$ 532 million (53.2 crore).
The company, however, said if it does not find any potential local company to undertake the joint venture, it will try to establish such a company alone, sources concerned said.
The Group submitted the proposal to the Board of Investment (BoI) on August 26 last, sources in the BoI told the FE Monday.
Initially, the company in its proposal said it would invest US$ 532 million in Bangladesh for setting up the industry.
In the proposal the company mentioned a projected capacity of 25 million tonnes a year and in Bangladesh it would produce 1.2 million tonnes per year.
"Essar has a target to supply hot-rolled coils/sheets required for downstream industries in Bangladesh that requires, at present, about 1.4 MTPA (Million Tonnes Per Annum)," stated the proposal submitted to the BoI.
The preliminary techno-economic feasibility study has already been completed and upon clearance and availability of land from the BoI, the Group will initiate financing and preliminary activities soon.
The project is scheduled to be completed by the end of 2010.
Essar Group has recognised Bangladesh as a potential investment destination, because, it is a growing economy. The country is in very close proximity to slab source at Orissa of India, BoI sources said.
When asked some local owners of steel and re-rolling mills said the government should scrutinise the matter thoroughly as the local such industries are also doing well.