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Krosaki Harima Corporation becomes strategic partner in Tata Refractories Ltd.

Issued at 2011-04-24



Mumbai. Tata Steel Limited and Krosaki Harima Corporation, a leading refractory player with global presence and advanced technology, have signed definitive agreements today to induct KHC as a strategic partner in Tata Refractories Limited. KHC is an associate company of Nippon Steel Corporation of Japan.

Tata Steel believes that, with this association,  TRL will be able to access latest technology and diversify its product offering. It will also provide TRL an opportunity to easily access markets outside India.

Under this arrangement, KHC will acquire 51% equity stake out of TSL’s current 77.46% stake in TRL. TSL will continue to hold 26.46% equity stake.

The transaction is based on an equity valuation of TRL of approximately Rs 1130 crores and is subject to approval of relevant regulatory authorities in India and Japan.

"We are delighted that we will be managing TRL in close association with Tata Steel. While TSL is a technologically advanced steel-maker, TRL is the largest refractory manufacturer in India. This partnership is a big honor for us and we will put our best efforts to develop TRL in future," said Yasuo Hamamoto, Representative Director and President - KHC.

As a key customer, Tata Steel Limited hopes to benefit from improved refractory technology by this association with KHC.

"I am happy with this association with Krosaki Harima and I am sure this partnership will propel the business to greater heights in future," said Hemant Nerurkar, Managing Director of TSL.

Tata Refractories Limited pioneered refractory production in India. Today, this ISO 9001 company is the largest refractory company in India with a wide range of products like Basic, Dolomite, High Alumina, Monolithic & Silica Refractories having a consolidated installed capacity of 3,04,760 TPA (FY ‘10).

Its key customers span the Steel, Cement, Glass, Copper, and Aluminium industries. Its main Works is located at Belpahar in the district of Jharsuguda in the state of Odisha, India. The company has two subsidiaries viz TRL Asia Pvt. Ltd. (a Singapore based SPV) and TRL China Ltd, 100% subsidiary of TRL Asia Pvt. Ltd. In FY10, its consolidated turnover was Rs 905 crores and the EBITDA stood at Rs 101 crores.


Source: Machinist India



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