TPT July 2010

I ndustry N ews

VCC rolling mill supplied to Daehan Steel in South Korea

SMS Meer. In 2009, some 9,000 employees worldwide generated a turnover of more than €3.8bn. The VCC ® plant is currently regarded as the most modern hot coiling process. The VCC ® technology is also highly suitable for integration into older plants with wire rod blocks and loop laying heads in order to permit production of compact and stable coils. The vertical compact coiler (VCC ® ) from SMS Meer can wind bars directly in vertical position. Thanks to this technology, customers can do without turning manipulators in future. The pass time is significantly reduced with the VCC ® system, as the coils are already formed in their natural finished position. The plant is scheduled to go into operation in April 2011. SMS Meer – Germany Fax: +49 211 881 4386 Email: thilo.sagermann@sms-group.com expected to be completed in around 90 days. The total investment in the acquisition will be around Rs 400 crore, of which approxi- mately Rs 200 crore will be used for future business growth in both EPC and BOOT assets. The entire investment will be funded by the existing cash flows of Welspun Gujarat. The acquisition will enable Welspun to move a step towards complete integration by being a one-stop-solution in the line pipe segment. It will capture the full value chain, from manufacturing of plate and coil, to line pipe, and pipe laying. Welspun – India Website: www.welspun.com

DAEHAN Steel, South Korea, has placed an order with SMS Meer, Germany, for the supply of a VCC ® (vertical compact coiler) rolling mill for compact coils. The mill with an annual capacity of 450,000 tons will be the world’s first rolling mill that concentrates exclusively on the production of compact coils. SMS Meer is to supply the key equipment, such as six housingless stands each in H/V arrangement for the roughing and intermediate trains, an eight-stand finishing block in V arrangement, heat treatment equipment, VCC ® facilities, the electrical equipment and the automation system. In addition, SMS Meer will be WELSPUN Infratech Ltd, a subsidiary of Welspun Gujarat Stahl Rohren Ltd and part of US$3bn Welspun Group, has signed an agreement to acquire a majority stake in construction company MSK Projects India Ltd. Welspun sees huge potential in the $500bn infrastructure sector in India, along with synergy it can drive in pipe laying business. Welspun has a special focus on oil and gas pipelines, water and wastewater systems, highways, civil and industrial projects, and power plant construction. MSK has three decades of experience, and its business model includes EPC projects in roads, industrial construction and PPP (public private partnership). MSK also

responsible for the coordination of the erection and commissioning. The production line processes billet sizes of 130 x 130mm. It is planned that the mill will be expanded to cover billet sizes of 150 x 150mm. The rebar sizes correspond to the Korean standard D10 to D16; the production of corresponding round bar sizes is also possible. SMS Meer GmbH is a company of the SMS group, which is, under the roof of the holding SMS GmbH, a group of companies internationally active in plant construction and mechanical engineering for the steel and non-ferrous metals industry. It consists of the two business areas: SMS Siemag and owns several BOOT (Build Own Operate Transfer) assets in the road sector, water and bus terminals, most of which are nearing completion with toll income commencing in the near future. Welspun aims to acquire a stake of around 75% through a combination of share purchases from promoters, associates, investors, preferential allotment and open offer. The company will make a mandatory open offer to the public shareholders of MSK Projects. The transaction has been unanimously approved by the boards of directors of both companies. The closing of the transaction will also be subject to customary conditions including regulatory approvals, and is

Welspun Infratech to acquire MSK Projects India

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J uly 2010

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