Welspun Corp to set-up CWC Plant in Gujarat

Welspun Corp Ltd. | Steel & Iron Products | Metals & Mining | BSE: 532144 | NSE: WELCORP

25 Aug 2015 Evaluate

Welspun Corp (WCL), the flagship company of $3 billion Welspun Group, is entering into a joint venture (JV) with Wasco Energy, a wholly owned subsidiary of Wah Seong Corporation Berhad, Malaysia. The joint venture company is to set-up a state-of-the-art Concrete Weight Coating (CWC) Plant at Anjar in state of Gujarat. WCL, which is one of the largest Large Diameter Steel Pipe manufacturers in the world, will hold 51% and Wasco will hold 49% in the joint venture company. This venture will augment WCL’s offering to the market duly supported by Wasco’s strong credentials in concrete weight coating business globally.

The joint venture will provide WCL with the strategic advantage of becoming a one-stop solution for Steel Pipe Coating requirements to service all offshore requirements for the Oil & Gas industry. The joint venture will help both companies to reduce the time to market, whilst maintaining the technical excellence that Welspun is renowned for. This JV will also support Wasco to expand its foot print across the Indian subcontinent.

Welspun Corp is currently in four businesses viz Line Pipes, Energy, Infrastructure & Steel and enjoys a global leadership position in the first two businesses. It may be recalled that Welspun Corp is already in advanced stages of demerging the parts of its business other than Line Pipes into Welspun Enterprises through a court process.