| Welspun-Gujarat Stahl Rohren has entered into an agreement to form a joint venture company with US-based Lone Star Technologies, for manufacturing spiral welded tubular products for the oil and gas industry. |
| Under the agreement, Lone Star and Welspun Pipe, a 100 per cent subsidiary of Welspun-Gujarat Stahl Rohren, would acquire 40 per cent and 60 per cent stake respectively in the newly formed company. |
| The JV company "" Welspun Lone Star Tubulars would be funded with an aggregate consideration of around Rs 300 crore ($66 million) in equity and debt. |
| "This partnership will leverage our high-quality, efficient line pipe manufacturing capabilities with Lone Star's strong brand name and extensive sales and marketing expertise, allowing us to provide a wide array of products for onshore and offshore line pipe requirements to our customers," Welspun-Gujarat Stahl Rohren Vice Chairman and Managing Director B K Goenka said. |
| The new facility would be located in South West America and is expected to come online by early March 2008, the saw pipe manufacturer informed the Bombay Stock Exchange. |
| Under the terms of the agreement, Welspun Lone Star Tubulars would establish a new manufacturing facility capable of producing three lakh net tonnes of spiral welded pipes, for oil and gas applications in North America. |
| The JV partners expect to realise significant benefits from this transaction, which would be accretive to the earnings per share of both the companies in 2008-09. |
| The shares of the company were trading at Rs 86.35, up 1.17 per cent on the BSE. |
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