India’s SMC Power acquired the integrated plant of insolvent steelmaker Concast Steel and Power Limited through bankruptcy proceedings. SMC Power offered an upfront payment of Rs300 crore ($39.65mn) for the plant and a 70MW captive power unit, according to local media reports.
Concast Steel and Power Limited produced sponge iron, pig iron, billets, rebars, structural steel products and ferroalloys. The integrated plant is based in Jharsuguda, Odhisa, with an annual capacity to produce 775,000mt of pig iron and sponge iron, and 250,000mt of rebars. The company went bankrupt in November 2017 when the State of Bank of India referred it to insolvency court with dues of Rs10,000 crore. In the absence of restructuring offers, the National Company Law Tribunal ordered the liquidation of Concast in September 2018.
SMC Power has a DRI plant with the capacity to produces 200,000mt sponge iron annually. The company has an installed annual capacity to produced 350,000mt billets and 250,000mt rebars. The acquisition of Concast’s Jharsuguda assets will help SMC Power increase its production capacity and achieve synergy of operations.