SunCoke Energy and VISA Steel Launch Joint Venture in India
03/18/2013 - SunCoke Energy, Inc. and VISA Steel Limited announced the official launch of their 400,000 tonne coke making joint venture in India called VISA SunCoke Limited.
SunCoke Energy, Inc. and VISA Steel Limited announced the official launch of their coke making joint venture in India called VISA SunCoke Limited. SunCoke Energy holds a 49% interest in the joint venture, with VISA Steel holding the remaining 51%. SunCoke has invested approximately Rs. 368 Crores (US$67 million) to acquire a 49% stake in the joint venture.
VISA SunCoke Limited is comprised of a 400,000 tonne heat recovery coke plant and the associated steam generation units at Kalinganagar in Odisha, India. SunCoke and VISA Steel will co-manage the business with equal representation on the partnership’s board.
“This partnership marks a key milestone in SunCoke Energy’s international growth strategy. By teaming with VISA Steel, SunCoke is entering India with the wisdom and experience of a premier and highly regarded local partner,” said Frederick “Fritz” Henderson, chairman and chief executive officer of SunCoke Energy, Inc. Henderson emphasized, “As infrastructure, housing and transportation needs accelerate in India, local steelmaking companies will require high quality coke and VISA SunCoke is prepared to be their supplier of choice.”
Vishambhar Saran, chairman of VISA Steel said, “We are pleased to finalize our partnership with SunCoke and it’s a great opportunity for VISA SunCoke to leverage its operating and technological expertise to serve customers across India with the highest quality coke. The coke industry in India is a key market that offers attractive growth opportunities and we believe that VISA SunCoke is well-positioned to grow its coke business and become an industry leader.”
SunCoke Energy, Inc. is the largest independent producer of metallurgical coke in the Americas, with 50 years of experience supplying coke to the integrated steel industry. Its advanced, heat recovery coke making process produces high-quality coke for use in steelmaking, captures waste heat for derivative energy resale and meets or exceeds environmental standards. Its coke making facilities are located in Virginia, Indiana, Ohio, Illinois and Vitoria, Brazil, and its coal mining operations, which have more than 114 million tons of proven and probable reserves, are located in Virginia and West Virginia.
VISA Steel is a leading player in the specialty steel, sponge iron, coke and ferro chrome industry in India with manufacturing facilities located at Kalinganagar Industrial Complex in Odisha. VISA Steel has transferred its business of manufacturing and sale of metallurgical coke and associated steam generation units located at Kalinganagar, Odisha by way of slump sale on a going concern basis to VISA SunCoke Limited where it holds 51% stake. VISA Steel also holds a 65% stake in VISA BAO Limited, a joint venture company with Baosteel, one of China’s leading steel companies, which is setting up a ferro chrome plant in Odisha.
