thyssenkrupp sells business in India
thyssenkrupp has sold thyssenkrupp Electrical Steel India Private Ltd. to the Indian-Japanese consortium of JSW Steel Limited and JFE Steel Corporation.
Image for illustration purposes. (Image credit: Tobias Arhelger/Shutterstock.com)
India, Maharashtra: thyssenkrupp has sold its Indian business thyssenkrupp Electrical Steel India Private Ltd. to the Indian-Japanese consortium of JSW Steel Limited and JFE Steel Corporation. The consortium is acquiring the business for a purchase price of around €440 million ($476.5 million). thyssenkrupp Electrical Steel India is part of the Electrical Steel business unit, which belongs to thyssenkrupp’s Steel division. The main site of the company is located in Nashik, around 150 kilometers from Mumbai.
The consortium consists of the largest Indian steel manufacturer, JSW Steel Limited, part of the JSW Group, and JFE Steel Corporation, the second largest steel manufacturer in Japan. The sale is taking place for market-strategic reasons. The transaction is expected to be closed within the next few months.
“The supply of raw materials from thyssenkrupp’s German steelworks to India is cost-intensive and weakens our competitiveness in India in the long term. Setting up our own local raw material production is not economically feasible for us. Compared to our local competitors, we will not be able to achieve the same economies of scale by supplying from Germany. This is why the sale is the right step for us at the right time,” explained Dennis Grimm, Spokesman of the Executive Board of thyssenkrupp Steel.
The proceeds from the sale will strengthen the steel segment’s capital base and will be used for the green transformation, including the activities of thyssenkrupp Electrical Steel. As demand for grain-oriented electrical steel remains high due to the energy transition, the company will focus on growth markets in Europe and North America.
thyssenkrupp Electrical Steel manufactures GOES, a soft magnetic material used in transformers and large high-performance generators. thyssenkrupp Electrical Steel operates sites in Gelsenkirchen in Germany and Isbergues in France.
Source: thyssenkrupp Steel
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