Tata BlueScope Steel, a joint venture between Tata Steel and Australia-based BlueScope Steel, will invest Rs 880 crore (Rs 8.8 billion) in setting up a metal coating facility in Jamshedpur.
Chetan Tolia, managing director, Tata BlueScope Steel said the plant would be on stream by the last quarter of 2009. He was speaking on the sidelines of the AIMA-AAMO 34th National Management Convention.
The joint venture has already invested Rs 340 crore (Rs 3.4 billion) in setting up three rollforming and pre-engineered building facilities in Delhi, Pune and Chennai.
The capacity of the Jamshedpur facility would be 2,50,000 tonnes, of which colorbond, colour coated steel would constitute 1,50,000 tonnes and zinc aluminium coated steel will account for 1,00,000 tonnes.
Tata BlueScope currently sources colour coated steel from the Thailand and Australian facilities of BlueScope.
The demand for metal coated steel was on the rise, according to Tolia, with India's current requirements being four million tonnes.
The demand for zinc aluminium coated steel was increasing at the rate of 15-20 per cent, while that for colour coated steel was up by around 25 per cent.
Tata BlueScope was eyeing a turnover of Rs 1,000 crore (Rs 10 billion) by 2010, post the Jamshedpur facility. The joint venture is looking at clocking a turnover in excess of Rs 250 crore (Rs 2.5 billion) this year.
Tata BlueScope may also look beyond India. The joint venture is servicing requirements in the SAARC region.
In addition, the company would assume ownership of BlueScope Steel's LYSAGHT rollforming business in Sri Lanka, which has been in operation since 1994.
