Essar Steel eyeing Egypt's Kandil: report

Essar Steel is in talks for the acquisition of Kandil Steel of Egypt, reports said today.

Essar, which had earlier sent feelers to Kandil Steel, is likely to present the company's management with a formal proposal in the near future, an Emirates Business 24/7 report said. The report did not, however, quote any source.

The Egyptian company, which makes cold and hot-rolled coil and sheets, galvanised coils and pipes for outdoor, marine and industrial appliances, caters to the Mena and European markets, the reports added.

The company is targeting a capacity of a million tonnes per year in 2010, the report said.

In January, this year, Essar Steel Middle East, through its subsidiary, had announced plans to set up a 2,50,000-tonne processing and service centre in Dubai's Jebel Ali Free Zone to provide a base for its clients in the regions. Essar has a client base in the region spread across automotive, white goods, ship building and engineering sectors.

India's steel majors are in the process of consolidating their presence in the Middle East to service the robust demand for steel in the Middle East and North Africa (Mena) region, which has a projected supply shortfall of 15 million tonnes.