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NYK buys 26% in Tata Steel subsidiary

NYK buys 26% in Tata Steel subsidiary
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First Published: Mon, Mar 08 2010. 10 28 PM IST
Updated: Mon, Mar 08 2010. 10 28 PM IST
Bangalore: NYK Holdings (Europe) BV has acquired a 26% stake in the logistics and harbour operation services subsidiary of Tata Steel Ltd.
The Netherlands-based subsidiary of Japanese shipping firm Nippon Yusen Kaisha Line (NYK) paid an undisclosed amount for its shareholding in TM International Logistics Ltd (TMILL), located in Kolkata, an NYK statement said on Monday.
“This stock acquisition will allow the NYK Group to use its extensive know-how to contribute more to the supply chain of Tata Steel,” it said.
TMILL was founded in 2002 as a joint venture between Tata Steel (51% shares) and IQ Martrade Holding and Management GmbH (49%), a German firm that offers logistics services to steel and related industries. The firm arranges for transporting raw materials used to make steel and other products, and manages related harbour operations for Tata Steel.
NYK Holdings bought the 26% stake from IQ Martrade Holding.
NYK has been strengthening its business in India. In 2007, it set up Tata NYK Shipping Pvt. Ltd, an equal joint venture ship owning and operating company with Tata Steel, in Singapore to cater to the growing demand for transporting raw materials into and out of India.
TMILL will also handle the operation and maintenance contract for the upcoming Dhamra Port Co. Ltd, the developer and operator of Dhamra port in Orissa, according to an executive at TMILL who did not want to be named.
Engineering firm Larsen and Toubro Ltd and Tata Steel are equal partners in Dhamra port, which will start operating the first phase of a mainly dry bulk cargo handling port by June.
The port will have a capacity to handle 22 million tonnes of iron ore, coking coal, thermal coal and limestone a year. The venture has invested close to Rs2,000 crore for the first phase.
p.manoj@livemint.com
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First Published: Mon, Mar 08 2010. 10 28 PM IST