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JSW Ispat to acquire Raigad unit of HeidelbergCement

Wednesday, 22 May 2013
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JSW Ispat Steel, a unit of the JSW Group, is planning to acquire the Raigad cement grinding facility in Maharashtra, of HeidelbergCement India.


Both the companies are negotiating and finalizing the terms of the business transfer agreement. The transaction will be completed only after obtaining all relevant approvals, including that of shareholders.


The acquisition will enable JSW Ispat Steel to develop a stable outlet for the evacuation of slag, a waste generated during the smelting and refining of ore. It will also enable JSW to create additional grinding facility for its consumption and disposal. The cement grinding unit has an installed capacity of 0.60 million tpa.


The acquirement is part of the HeidelbergCement's strategy of divesting less strategic assets with lower margins to focus on more strategic and key operations in Central India. However, recently, the company expanded its cement capacity from two to five million tpa.


 

 
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