India’s second largest manufacturer of high-grade refractory products, Dalmia-OCL has purchased the German speciality refractory maker GSB Group GmbH for 15 million euros, as a part of a strategy move to expand foothold in Europe. The acquisition will give Dalmia-OCL the access to Europe’s steel and refractory industry, and technology required to manufacture cleaner steel.
Refractory is a heat-resistant material, widely used to make copper, steel, cement, and aluminium, etc. Presently, GSB Group operates two production sites at Bhilai (India) and Bochum (Germany).
According to Dalmia-OCL, the increasing demand for steel in India would fuel refractories consumption. Sameer Nagpal, the CEO of Dalmia-OCL, said that their extensive refractory portfolio and GSB’s access to steel customers in Europe, will make them a robust competitor in Europe.
He mentioned that Dalmia Bharat Group has invested approx. 15 million euros for this buyout, which would be funded partially by internal accruals and debt. He further said that the buyout will help them tap newer talents and resources across Europe, which will further help strengthen their position in India also, which is the world’s fastest expanding market for refractories.
As per him, the company’s domestic steel industry is likely to produce 300 MTPA of steel by the year 2030 as compared to the existing 100 MTPA, proving the company a lucrative opportunity to multiply. He said that the group has an ambitious target, owing to massive demand for refractory, and thus they have started working on their business rigorously.
The firm is aiming to grow the adoption of premium steel in diverse sectors, such as home appliances and automobile industry. Furthermore, Dalmia Bharat Group is looking forward to export products to Europe.
The global steel industry is flourish faster than ever owing to the significant demand for electrical steel in the automotive industry, mainly in electrical vehicles. With the automotive companies investing rigorously in EVs, the demand for electrical steel is expected to bloom notably. Moreover, steel companies are increasingly adopting fast-changing trends in the electrical steel market. According to a Fact.MR report, the evolving electrical steel market is expected to accelerate at more than 8% CAGR by 2026.
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