GS Global plans to invest US$5m in India’s Steel Strips Wheels, soon after the Indian supplier sold a stake to Sumitomo Metal Industries a top Steel Strips official has said.
Steel Strips, which makes wheel rims for auto makers, will use the funds to expand capacity at its Jamshedpur plant in Jharkhand, managing director Dheeraj Garg told Reuters. The deal would be signed on 15 December, he said.
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“We will be expanding our project at Jamshedpur from 1m units to 1.6 million,” he told the news agency.
Steel Strips will allot 377,000 shares to GS Global at 595 rupees a share, it said in a statement cited by Reuters. The deal will also help the company source steel from GS Global, which has interests in steel trading and petrochemicals. The Indian firm would look to source technology for its future projects through GS Global too, the statement added.
Garg said the firm was looking to raise fresh capital from overseas players, partly to set up a project in Pune in Maharashtra.
“We are talking to some players to raise fresh money. You will hear something in the next two months,” he said.
