JSW seeks ally for cement, aluminium biz
Rio Tinto Alcan said to have approached JSW for an equity tie-up
Shubhashish. Mumbai
JSW Steel, which announced an alliance with Japan's JFE Steel on Thursday, is seeking partners for the group's cement business. It has also been approached by international aluminium companies for a joint venture with JSW Aluminium.
Seshagiri Rao, joint managing director and group CFO, JSW Steel, told DNA Money, "I am not denying talks with other cement makers for a possible alliance". He, however, declined to name the companies JSW is in talks with.
JSW Cement, which looks after the group's cement business, was set up in 2007. It is setting up a 4.5 million tonne slag-based clinker in Andhra Pradesh. Construction is currently on, and the Rs 1,900 crore project is likely to be completed by 2011.
The JSW group has diversified interests in steel, energy, minerals and mining, aluminum, infrastructure and logistic, cement and information technology.
For the aluminium business, Rao denied bringing any partner on board at present. "A lot of international aluminium companies have approached JSW but we are currently not looking for a partner," he said.
He added that it is too early too comment on future partnerships as the aluminium project has a long way to go. JSW plans to spend Rs 4,200 crore for a 1.5 million tonne per annum alumina refinery and a 0.25 mtpa aluminium smelter in Andhra Pradesh. Rao said the financial closure for the debt part of the project (Rs 3,000 crore) has been achieved.
Sources in the company confirmed that talks with some international aluminium majors are on. World aluminium leader Rio Tinto Alcan, which produced 4 million tonne of aluminium in 2008, is also said to be in talks with JSW for providing technology for the refinery and a possible equity stake in the project.
Rao, however, declined to confirm any name.
Rio Tinto Alcan is already in a strategic alliance with Nalco for identifying potential projects in India and abroad.
BHP Billiton, world's sixth largest aluminium makers with a production capacity of 1.3 mtpa of aluminium, is also looking to enter the Indian markets for a long time. It had in 2005 announced plans to enter India and has been scouting for mines in Orissa. The company hasn't got any headway in the country so far and is looking for potential opportunities.
A government official had told DNA Money in November last year that BHP Billiton wanted to set up a one million tonne per annum alumina plant with an initial investment of about Rs 5,000 crore.



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