Friday, February 25, 2005
PK Mittal firm buys Delta Steel of Nigeria
Mansi Kapur/Mumbai February 25, 2005
The P K Mittal-controlled Global Steel Holdings (GSHL) has acquired a 80 per cent stake in Nigeria-based Delta Steel Company, Aladja from the federal government of Nigeria. It is estimated that GSHL would pay $30 million (approximately Rs 138 crore) for the stake.
The 1.8 million tonne per annum plant is currently shut down. The company, which manufacturers longs and structurals, has a 2 million tonne pelletisation plant, a 1.4 million tonne per annum directly reduced iron (DRI) plant and a 1.8 million tonne per annum electric arc furnaces.
Delta Steel also owns a captive port with an annual material handling capacity of 4 million tonne. The port will be used for both inbound and outbound traffics.
Formerly known as Global Infrastructure Holdings Limited, GSHL is a special purpose vehicle floated by the Mittals for managing their international operations.
It holds about a 6 per cent stake in Ispat Industries. With this acquisition, GSHL's global steel making capacity is about 11.5 million tonne.
It also manages one steel plant in Libya (1.75 million tonnes) and another in Nigeria (2.2 million tonnes). Besides, it owns another plant in the Philipines (3 million tonnes).
The company acquired a 2.3 million tonne plant in Bulgaria recently.
The acquisition of Delta Steel comes after GSHL taking over the management and operations of Ajaokuta Steel Company in Nigeria in August 2004. GSHL has signed a 10 year agreement with the Nigerian government for managing the plant.
Last month, GSHL was given iron ore mining leases of the Nigerian Iron Ore Mining Company (NIOMCO). NIOMCO has mines in the region of Itapke and Ajaybanko and also has an associated benificiation plant, which can produce high-grade iron ore concentrates.
The iron ore linkages will be utilised for both the Delta Steel plant as well as Ajaokuta Steel Company.