RINL plans tie-up with Lankan firm
Expects to finalise the deal by May end KMP Patnaik Visakhapatnam: Rashtriya Ispat Nigam Ltd (RINL), the holding company of Visakhapatnam Steel...
Expects to finalise the deal by May end KMP Patnaik Visakhapatnam: Rashtriya Ispat Nigam Ltd (RINL), the holding company of Visakhapatnam Steel Plant, is mulling for a tie up with Sri Lankan company for manufacturing special steel products for exporting to Asian countries. "If the tie up is finalised, we will go for wet lease of their premises where Concentric Vent Drain Tee and Thermo Mechanically Treated (CDT/TMT) rebars and structurals would be manufactured. We will also set up international marketing center there,'' said director of commercial TK Chand. Talking to The Hans India on Wednesday, Chand said the company has already called for expression of interest from Sri Lankan steel rod and bar manufacturers for the tie-up and the process of selection of the partner may come to a final stage by May. The company has already floated Expression of Interest in this regard and received offers from companies who have manufacturing facility in that country. By May the process might reach final stage, he added. "There will be no capital investment except for hiring the premises which could cost us `7 to `8 lakh per month. We are looking for a party with minimum three years experience in conversion of billets into CTD/TMT rebars and structurals and having valid licence for production. The entire capacity shall be dedicated to RINL," Chand added. The official said they would look at a new manufacturing either in Hambantota or Trincomalee areas of the island nation so that they can use the harbor network for export purpose to Maldives, Myanmar, Bangladesh and Thailand. A study conducted by the company revealed that there is good potential for RINL products in Sri Lanka beside exporting billets from Chennai port is a bit easy. Officials said that the company is considering to open a regional office at World Trade Centre in Sri Lanka. As of now the company is exporting about 3 per cent of its production to Sri Lanka and plans to increase it to 10 per cent in the next three years. Besides Sri Lanka, the company is exporting its finished products to US, UAE, Thailand and Bangladesh. The company is currently working on expansion of its production capacity to 6.3 MTPA from existing 3 MTPA. (With inputs from agencies)