Indian steel producer Arjas Steel Private Limited (ASPL) has signed a definitive agreement to acquire a 100 percent stake in Modern Steel Limited’s (MSL) steel, auto component and heat treatment facilities, a company official said on Monday, November 16.
The official said that the acquisition of MSL will add 450,000 mt per year specialty steel making capacity to ASPL’s production portfolio.
“The deal gives ASPL a manufacturing platform in north India, enabling us with additional capacities to serve our customers in a more effective way,” ASPL managing director Sridhar Krishnmurthy said, though he declined to divulge financial details of the deal.
ASPL, formerly Gerdau Steel India Limited, operates an integrated steel mill in the southern Indian state of Andhra Pradesh producing 300,000 mt of special steel bars for automotive, energy and defence equipment applications.
MSL, located at Chandigarh in northern India, has production facilities for special and alloy steel, stainless steel and bright bars, but was classified as ‘non-performing assets’ by lenders and banks in 2018.