Jindal sources said, the company was currently weighing two options after the relocation: outright sale to a Chinese company or to enter into a joint venture agreement with the company. The decision was likely to be finalised within the next month.
Sources said, if the joint venture route was adopted, then the Chinese company would have the management control. But, the Jindals would also have a stake in the company.
Refusing to divulge the name of the company, sources said, the Chinese company was interested in striking a long-term sourcing pact with Jindal Stainless.
Massillon, it may be mentioned was acquired from Bethlehem Steel and commenced operations in 2000. Massillon Stainless Inc had a capacity for 50,000 tonne per annum stainless steel cold rolling facilities.
Sources pointed out that a major part of the raw materials for Massillon was being sourced from the Jindal plant in Hissar.Apart from Hissar, raw material requirements for the plant were met through supply of hot bands from stainless steel mills in the US.
Industry sources said, by relocating the plant, Jindals would be establishing a stronghold in China, which happened to be one of the most important export markets for the company.
Jindal Stainless, however, already has a presence in China.
China accounted for around 90 per cent of Jindal Stainless
