The JV, to be known as Visa SunCoke Limited, will be 49% held by SunCoke with 51% by Visa. It will be made up of a 400,000 tonne heat recovery coke plant and steam generation unit in Kalinganagar, Odisha.
SunCoke invested about $US67 million to acquire its interest.
The companies will co-manage the business with equal board representation.
“This partnership marks a key milestone in SunCoke Energy’s international growth strategy,” chairman and chief executive officer Frederick “Fritz” Henderson said.
“By teaming with Visa Steel, SunCoke is entering India with the wisdom and experience of a premier and highly regarded local partner. As infrastructure, housing and transportation needs accelerate in India, local steelmaking companies will require high quality coke and Visa SunSoke is prepared to be their supplier of choice.”
Visa chairman Vishambhar Saran called the deal a great opportunity to leverage operating and technological expertise in the country.
“The coke industry in India is a key market that offers attractive growth opportunities and we believe that Visa SunCoke is well-positioned to grow its coke business and become an industry leader,” Saran said.
SunCoke Energy has coke-making facilities in Virginia, Indiana, Ohio, Illinois and Vitoria, Brazil, as well as coal mining operations with more than 114 million tons of proven and probable reserves in Virginia and West Virginia.
