Jindal Stainless is planning a joint venture (JV) with a Chinese company, which is in talks to buy its US subsidiary Massillon Stainless Inc. Jindal Stainless may pick up a majority stake after the plant is relocated to China.
The plant, which is now located in Ohio, has a cold-rolling capacity of 50,000 metric tonne per annum. “We are looking at various options for our US subsidiary as we have decided to exit the US market. We are in negotiations with a Chinese buyer who wants to relocate the plant to China as one of the options,” Ratan Jindal, vice-chairman and managing director, Jindal Stainless, told FE.
“If the deal goes through, then the plant will be relocated to China. Jindal Stainless will pick up a majority stake in the new venture,” he added.
This option seems feasible as the company may export hot-rolled coil (HRC) to China from its Hisar plant (Haryana), which may be then be converted into cold-rolled steel at the facility. Earlier, HRC was exported from Hisar to US.
