NEW YORK Indian special steel producer Visa Steel Ltd. and American metallurgical coke producer SunCoke Energy Inc. have entered into an agreement to build a coke plant in India.
Lisle, Ill.-based SunCoke Energy will invest $67 million to acquire a 49-percent interest in the joint venture. Kolkata, India-based Visa Steel will hold the remaining 51 percent.
The transaction is expected to close in the first quarter of 2013, subject to gaining the required approvals, including that of Visa Steels shareholders.
The plant will be located in the eastern Indian state of Orissa.
"The demand for coke from large and medium-sized steel producers has been increasing substantially, and there is potential to grow the coke business on a standalone basis," Visa Steel chairman Vishambhar Saran said.
The coke produced at the plant will be sold via Visa Steel subsidiary Visa Coke Ltd.
Visa Steel has an existing fully integrated 500,000-tonne-per-year special steel plant in Kalinganagar, Orissa.
A version of this article was first published by AMM sister publication Steel First.