The Pune-based precision seamless tubes and speciality
steel manufacturer, ISMT Limited, part of the Rs900 crore
Indian Seamless group, which has agreed to provide technical
and engineering services for setting up a seamless tubes
and steel mill in Australia, expects the project to emerge
the lowest-cost producer of seamless tubes in the world.
reported by domain-b yesterday (Indian
Seamless plans Australin venture with BSL, Breitenfeld)
the company has signed a proposal of cooperation with
Boulder Steel Limited of Australia and Breitenfeld Group
of Austria to supply its technology know-how for this
project from which it could earn up to 35-per cent equity
(along with some financial contribution) and be the major
shareholder in the joint venture project. The three companies
would signing the modalities of taking the project ahead
in the near future.
The company says the proposal is the first of its kind;
with companies from three continents pooling in their
technical expertise to make available globally acceptable
quality of seamless tubes at the most competitive prices.
The project will be located at Ipswich in Australia's
North-eastern state of Queensland, which offers cost advantages
in raw materials, energy, and skilled labour.
promoters have expressed the view that this joint venture
would be able to produce the lowest cost seamless tube
in the world. The Queensland government in Australia has
assured facilitation and financial support for the joint
P Kakkar, MD and. Rajiv Goel, CFO, ISMT Limited, in a
joint statement, said, "We have been operating internationally
for a long time as manufacturers of seamless tubes but
this project would provide us with the challenge of setting
up and operating a plant in a different cultural environment."
They, also, aver that they are looking for "manufacturing
locations that provide better economics of operations
and implement marketing strategies that make us unbeatably
proposal of cooperation between the three parties is for
$300 million to facilitate production of 350,000mtpa of
seamless tubes. The turnover of the proposed JV company,
at current prices, is projected at $400 million. The capacity
of the plant would be increased to 1 million tpa.
Limited would provide the detailed engineering, design,
procurement, and construction management for the project,
opening up opportunities for Indian equipment manufacturers.
ISMT Limited, taking on the lead role in a project of
this scale, is looking at growth through strategic partnerships
that would open up opportunities for improved global competitiveness.
Salil Taneja, president (business strategy and development),
ISMT Limited, "We would make sure that our manufacturing
and marketing operations are as efficient, if not more,
than any other company and I am sure that the multicultural
team would bring in a huge amount of knowledge and energy
to make it possible. What really matters is operating
with a purpose and ensuring that everyone in our trans-national
team is looking in the same direction.".
Limited has over the last two-and-a-half decades has emerged
as a strong engineering company with a strong focus on
product development and customer management.