India’s largest steel company, JSW Steel, has secured a €15mn loan from Germany’s KfW Ipex. The loan will be used to expand the company’s production site in Vijayanagar, South India.
The financing will allow JSW Steel to buy high-tech components from German companies LOI Thermprocess and Siemens VAI Metals Technology GmbH. Parts of the equipment are made in Italy and will be shipped to India from the southern European country.
The loan is covered by Euler Hermes and reinsured by Sace. It has a repayment term of 8.5 years. This is the fifth follow-up financing for the steel works in Vijayanagar. KfW has in the past, provided a syndicated loan to JSW Steel for funding equipment purchases which were then exported by medium-sized German-based businesses.
The loan allows JSW Steel to purchase an annealing coating line complete with peripheral equipment to produce energy-efficient silicon steel used in electrical equipment for various appliances and a twin Rh degasser for its steel melt shop.