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The agreement was signed by Kepa Bedialauneta, the chairman of Fagor Industrial, and Ratan Jindal, the vice-president and chairman of Jindal Steel, and includes the creation of a joint venture to develop a services centre for steel sheet formats in Spain.

The 5,300 m2 services centre, which will be called JSL España, S.L., will be located next to a Fagor Industrial warehouse in Lucena, Cordoba and will produce custom-tailored formats for the Spanish market, with rolls imported directly from India.

The €8M investment is already underway and the cutting line should be operating by September of this year. Both companies expect to produce 18,000 tons of steel sheet formats during the first year.

Jindal Steel, established in 1952 by its visionary founder O.P. Jindal, is currently comprised of 4 companies (Jindal Stainless, SAW Pipes, Jindal Steel & Power and JSW Steel) and more than 7,000 employees.

Jindal Steel is India’s leading manufacturer of galvanised steel sheets and steel rolls for the private sector. Last fiscal year, it boasted a turnover of €904M and a net profit worth €42M.

The company has 12 manufacturing plants in India and 2 in the United States. It maintains an active policy for expansion, integration and growth, and has strategic manufacturing and marketing alliances with other leading companies in the world.

This is Jindal Steel’s first cutting facility in Europe and signals the company’s entrance into the Spanish and European markets as supplier of steel sheet formats instead of rolls.

For Grupo Fagor Industrial, the agreement also constitutes a competitive edge for its factories. By having its raw materials close at hand, the group will have the capability to provide the best delivery services, with Just in Time responses, and will also reduce stocks.

Grupo Fagor Industrial is currently comprised of 1,600 employees and 10 factories manufacturing equipment for cooking, dishwashing, industrial cold, laundry and buffets. The factories are located in Spain, France, Italy, Mexico, Poland, Turkey and China. The group closed last fiscal year with a consolidated turnover of €220M and profits in the range of €7.5M.

http://www.fagorindustrial.com