Carborundum to take 51 per cent in South Africa's Foskor Zirconia

05 July 2008

Mumbai: Murugappa group firm Carborundum Universal Ltd has entered into an agreement with South Africa-based Foskor (Proprietary) Ltd to acquire 51 per cent equity stake in Foskor Zirconia (Proprietary) Ltd (FZL).

The acquisition is being made through Carborundum's investment subsidiary, which will hold a 51 per cent stake in FZL. The balance 49 per cent will be held by Foskor (Proprietary) Ltd and two other South African entities.

The agreement is subject to regulatory approvals in South Africa, Carborundum said in a statement. The company, however, did not disclose the value of the deal.

Foskor, based in Phataborwa, South Africa,  is the 3rd largest producer of Zirconia in the world. It has an installed annual capacity of 4,200 tonnes for Zirconia.

FZL was seeking a strategic partner in its next phase of expansion and growth. Carborundum Universal, with interests in abrasives, ceramics, refractories and minerals, is one of the two such companies globally.

With capabilities in mineral processing, product branding, market access, application engineering and global management practices, Carborundum will help FZL to grow its range of products and business.