Chinese firm to invest up to $150 mn in Uttam Group's project

Uttam Group today said it has signed an investment agreement of up to USD 150 million with Chinese firm Tidfore Heavy Equipment Group Co Limited.

The investment will be in the form of equity for Uttam Group's Wardha Expansion Project undertaken in conjunction with POSCO.

The agreement was inked in presence of Sun Yin Sheng, Secretary, Hunan State and senior officials from steel giant POSCO and SBI, the company said in a statement.

Uttam Galva Metallics, part of the Miglani family-led Uttam Group and South Korea-based POSCO, had signed a Memorandum of Agreement (MoA) in December 2015, it said.

This was to deploy fine ore reduction process (an alternative iron making technology using iron ore fines) and CEM (a process to replace a large portion among CR products with thin hot rolled products) technologies at the company's Wardha plant in Maharashtra.

As a result of the expansion, its Wardha Steel Complex will become an integrated steel unit with capacity of 1.50 million tonnes per annum, it added.

"I am glad to announce that we have attracted upto USD 150 million investment at our facility in Wardha," UGML Director Ankit Miglani said.