Mumbai: Tata Steel , the world’s seventh-largest steelmaker, on Thursday agreed to sell 51% stake in a refractories business to Japan’s Krosaki Harima Corp , valuing the unit at Rs1,130 crore ($255 million).
Krosaki, an associate company of Japan’s largest steelmaker Nippon Steel Corp , is a leading refractory player with global presence and access to advanced technology.
Tata Refractories is the largest company in its segment in India, and manufactures a range of dolomite, high alumina and silica refractories, which are used in linings for furnaces, kilns, incinerators and reactors.
It posted revenue of Rs910 crore and operating profit of Rs100 crore in fiscal year ended March 2010.
Tata Steel will hold 26.5% stake in the business.
Earlier this year, Nippon and Tata Steel said their $480 million cold-rolled sheet steel joint venture will begin production in India by late 2013, and agreed to discuss expanding co-operation.
At 1.13 p.m., shares in Tata Steel, valued by the market at $12.7 billion, were up 1% at Rs630.80 in a firm Mumbai market.