VISA Steel, SunCoke Energy announce Indian venture

SunCoke Energy will invest approximately Rs. 368 Crores (US$67 million) to acquire a 49% interest in the joint venture. VISA Steel will hold the remaining 51%. The joint venture, which will be unlevered at closing, will be comprised of VISA Steel’s existing 400,000 MT per annum heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha, India. The transaction is expected to close in the first quarter of 2013, subject to customary conditions, including approval from VISA Steel shareholders.
Commenting on the announcement, Mr. Vishambhar Saran, Chairman of VISA Steel said, “This is a great opportunity for VISA Steel to partner with SunCoke, known for its operating and technological expertise, to grow the coke business.” He added, “The demand for coke from large and medium size steel producers has been increasing substantially and there is a potential to grow the coke business on a standalone basis.”

“We are pleased to partner with VISA Steel, a company with strong leadership in the steel and coke industry, to grow our international footprint and establish a cokemaking presence in India,” said Mr. Fritz Henderson, Chairman and Chief Executive Officer of SunCoke Energy, Inc. He continued, “We believe that the coke industry in India is a key market that offers us attractive growth opportunities.”