Saturday, January 5, 2008

Maharashtra Seamless buys facility in Romania; to invest Rs 3 bn

Maharashtra Seamless, a flagship company of DP Jindal Group, announced today the completion of the acquisition of seamless plant in Romania having an installed capacity of 200,000 TPA. The total cost of the project including setting up of the infrastructure at a new location for the facility and complete modernization is estimated to cost Rs 3 billion, which will be funded out of internal accruals only.

This plant has been acquired on assets sale basis without any liability and it is having the capacity to manufacture seamless pipes upto 7` od including drill pipes. The plant will be dismantled and relocated to India at a strategic location and will be operational in India in the next 2 years. The plant facility would also include the drill pipe capability, which is having a very strong demand in the current OCTG segment.

Maharashtra Seamless is planning to have this capability from quite sometimes and it would strengthen the company`s efforts to enlarge its product and customer base in the coming time. It is likely to add to the substantial growth in the businesses of the company, the company said in a release.

Shares of the company gained Rs 25, or 3.99%, to trade at Rs 651.05. The total volume of shares traded was 52,644 at the BSE. (2.21 p.m., Friday)

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