Essar enters Europe with Servosteel acquisition | business | Hindustan Times
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Essar enters Europe with Servosteel acquisition

business Updated: Jun 28, 2010 21:55 IST
HT Correspondent

Domestic steel heavyweight Essar Steel on Monday announced the acquisition of UK’s largest independent steel processor Servosteel for an undisclosed amount.

Servosteel has a steel processing capacity of 300,000 tonnes per annum and is capable of processing the entire flat product range — hot rolled coils, cold rolled coils, hot rolled pickled, galvanized and color coated products. This is Essar’s first acquisition in Europe. The company is present in Canada, the US and Indonesia.

Essar is now eyeing the West Asian zone, where through its subsidiary the company had announced plans to set up a 2,50,000-tonne processing and service centre in Dubai’s Jebel Ali Free Zone in January this year to serve Essar’s expanding regional client base in sectors such as automotive, white goods, ship building and engineering.

The company is also believed to have sent feelers to Kandil Steel and is likely to offer a formal proposal in the near future.

The company, however, denied any such plans.

“Essar Steel is not in talks to acquire Kandil Steel. We categorically deny this information,” said a spokesperson.

Essar has a global steel production capacity of 8.6 million tonnes per annum and operates seven service centres in India, Indonesia and Canada with a total annual capacity of over 3 million tonnes.