Government-owned Steel Authority of India’s (SAIL’s) reluctance to join a non-exit 30-year contract has delayed its joint venture with ArcelorMittal for specialised steel.
The joint venture has been in the works for three years but the two steel majors are yet to sign a formal agreement.
“These joint ventures take time because many commercial issues are involved. Since the JV would be for a very long duration, you have to be very careful as to what the present challenges are and what market would be there so that the joint venture remains profitable throughout its tenure,” said a senior official with direct knowledge of the matter. When contacted, a SAIL spokesperson did not comment.
ArcelorMittal wants a long-term binding agreement, at the end of which the two companies could take a call on whether to continue with the venture. Read More
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