JSW Steel decided to enter into a JV for setting up a steel plant for manufacturing of TMT bars in Georgia. The plant will cater to the needs of construction industry in Eastern European countries mainly in Georgia, Armenia, Azerbaijan, Russia and former CIS Countries.
The board of director of JSW Steel has decided to invest in Geo Steel LLC, to the extent of 49% of equity. Geo Steel LLC is incorporated under the laws of Georgia and is setting up a steel rolling mill facility in Georgia with an initial capacity of 175,000 tonnes per annum of rebars.
The estimated project cost is USD 42 million, which is proposed to be financed by way of debt of USD 28 million and the balance through equity of USD 14 million.
Out of the total equity capital of USD 14 million required for setting up of the project, JSW Steel will invest USD 6.86 million through its wholly owned subsidiary JSW Steel (Netherlands) BV comprising 49% of the equity. The remaining 51% will be funded by JV partner.
