U.S. Coke leader to take equity stake in Global Coke Limited
Kolkata June 7th, 2011 - U.S.-based SunCoke Energy Inc., America’s largest independent Coke producer, has entered into a MOU to make a minority investment in the equity of Kolkata-based Global Coke Limited for a consideration of approximately U.S.$30 million. The due diligence process is currently on. The acquisition of the stake will be subject to customary closing conditions, including the execution of definitive agreements and the approval of management of the respective parties.
India is poised to emerge as one of the leading producers of steel. But it is absolutely dependent on imported coke to meet her burgeoning demand, which is currently met primarily by Australian entities. With this partnership in place, Global Coke would like to play an increasingly important role in quenching India’s hunger for coke in the years to come.
Global Coke Limited, one of the fastest growing entities in the domain, currently operates two plants – condemned units that it has turned around in record time – at Jamnagar, Gujarat and Sindhudurg, Maharashtra. It also has long term agreements with Essar Steel and Tata Metalliks Ltd. The company is setting up facilities in the east coast in Kharagpur, West Bengal. The company has also secured its supplies by way of long term off-take agreements with the only operating coal mine in Mozambique from which shipments have already started arriving.
An equal opportunity employer, Global Coke is also a responsible corporate citizen and is setting up facilities to generate power by recovering the waste heat generated during the carbonization process. To further strengthen its logistical support systems, the company is in the process of setting up its own jetty in Goa and has already established a sizeable presence in Singapore to facilitate global commodity trade.
From a mere Rs 37 crores in 2007, the company has grown at a phenomenal pace and has touched a turnover of Rs 800 crores in the last fiscal year, which is expected to touch, if not surpass the Rs 1200 crore mark in 2012. While so far, the growth story has been scripted with internal accruals and institutional funding, Global Coke has plans to go public in the near term to ensure the participation of the investing fraternity in this exciting resource play.
For more information visit: www.globalcoke.in
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