VISA Steel Limited (BSE: 532721 and NSE: VISASTEEL) and SunCoke Energy, Inc. (NYSE: SXC) are pleased to announce that they have entered into agreements to form a cokemaking joint venture in India. SunCoke Energy will invest approximately Rs. 368 Crores (US$67 million) to acquire a 49% interest in the joint venture. VISA Steel will hold the remaining 51%. The joint venture, which will be unlevered at closing, will be comprised of VISA Steel’s existing 400,000 MT per annum heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha, India. The transaction is expected to close in the first quarter of 2013, subject to customary conditions, including approval from VISA Steel shareholders.
Commenting on the announcement, Mr. Vishambhar Saran, Chairman of VISA Steel said, “This is a great opportunity for VISA Steel to partner with SunCoke, known for its operating and technological expertise, to grow the coke business.” He added, “The demand for coke from large and medium size steel producers has been increasing substantially and there is a potential to grow the coke business on a standalone basis.”
“We are pleased to partner with VISA Steel, a company with strong leadership in the steel and coke industry, to grow our international footprint and establish a cokemaking presence in India,” said Mr. Fritz Henderson, Chairman and Chief Executive Officer of SunCoke Energy, Inc. He continued, “We believe that the coke industry in India is a key market that offers us attractive growth opportunities.”
VISA STEEL LIMITEDVISA Steel is a leading player in the Special Steel, Coke and Ferro Chrome industry in India with manufacturing facilities located at Kalinganagar Industrial Complex in Odisha. VISA Steel has decided to transfer its Business of manufacturing and sale of metallurgical coke and associated steam generation units located at Kalinganagar, Odisha by way of Slump Sale on a going concern basis to its subsidiary VISA Coke Limited. VISA Steel also holds a 65% stake in VISA BAO Limited, a joint venture company with Baosteel, one of China’s leading Steel Companies, which is setting up a Ferro Chrome Plant in Odisha. Further information about VISA Steel is available at www.visasteel.com. SUNCOKE ENERGY, INC. SunCoke Energy, Inc. is the largest independent producer of metallurgical coke in the Americas, with 50 years of experience supplying coke to the integrated steel industry. Our advanced, heat recovery cokemaking process produces high-quality coke for use in steelmaking, captures waste heat for derivative energy resale and meets or exceeds environmental standards. Our cokemaking facilities are located in Virginia, Indiana, Ohio, Illinois and Vitoria, Brazil, and our coal mining operations, which have more than 114 million tons of proven and probable reserves, are located in Virginia and West Virginia. To learn more about SunCoke Energy, Inc., visit our website at www.suncoke.com. FORWARD LOOKING STATEMENTS Some of the statements included in this press release constitute “forward looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Such forward-looking statements are based on SunCoke Energy’s management’s beliefs and assumptions and on information currently available. You should not put undue reliance on any forward-looking statements. Forward-looking statements include all statements that are not historical facts and may be identified by the use of forward looking terminology such as the words “believe,” “expect,” “plan,” “project,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “will,” “should” or the negative of these terms or similar expressions. Forward-looking statements involve risks, uncertainties and assumptions.