By Jagdish Kumar2015-11-24T15:40:00+00:00
India’s largest manufacturer of auto-grade steel, Bhushan Steel Limited, has reportedly decided to sell and lease back its oxygen plant.
It is understood that the sale and lease was because the company has been constantly facing cash flow stress and this will ease the liquidity for the company.
Bhushan Steel has been under pressure from its lenders to cut down its debt burden; around 51 banks have an exposure of around $6.05bn in the company.
The company posted a net loss of Rs 7.3bn ($110m approx.) for the second quarter ended 30th September 2015, compared to a net loss of Rs 2.9bn ($43m) recorded during the quarter ended 30th September 2014.
In its recent filing to the Bombay Stock Exchange (BSE), Bhushan Steel explained that, “It had entered into the arrangement to sale & Lease Back arrangements of Cock Oven Plant -I and Oxygen Plant -V of the company situated at integrated steel plant, Meramandali Orissa.”
The company also put another oxygen plant for sale and lease in February (2015) and by putting two of its oxygen plants into such a position, it aims to raise $151m during the 2015-16 fiscal year.
Amidst the recent announcement of the closure of one of the UK’s largest steel plants, gasworld Business Intelligence takes a look at how similar closures over the past 12 months have affected industrial gas markets across the globe.
Ever since Chinese Premier Li Keqiang delivered this year’s government work report at the 12th National People’s Congress and introduced the ‘Internet+’ strategy, it has become a buzzword in China for many industries. Now, it seems this might be a solution to the difficult situation of the steel industry in ...
Month on month the gasworld website continues to be the primary portal for information, on a global scale, about our industry - be it through the provision of news and features, or information in the expansive company directory section. Launched in 2004, it is the only independent online news provider and information portal for the global industrial gas community and the larger end-user markets. The website also now incorporates news for gasworld US and Specialty Gas Report.
To find out more about gasworld's advertising opportunities click here.