[ Industry Update ]
[ Industry Update ]
Hill & Smith PLC acquires FM Stainless
Hill & Smith PLC ( HILS ), the international provider of sustainable infrastructure products and services , has announced the acquisition of FM Stainless , LLC . The Group has completed the acquisition of the business and assets of FM Stainless from its principal shareholder , Chad Hood , who will be staying with the business . The initial cash consideration is USD 8.25M ( c . GBP 6.6M ), on a debt and cash free basis . Further cash consideration of up to USD 0.5M ( c . GPB 0.4M ) is payable , conditional on the achievement of financial performance targets in the year following the acquisition . FM Stainless , located in Ellijay , Georgia , manufactures stainless steel pipe supports , expansion anchors , and fasteners principally for water and wastewater , attractive end markets with strong growth prospects underpinned by significant multi-year investment in water infrastructure . FM Stainless sells its products across the US , with a particular focus on the southeast region , a geography that has seen favourable demographic movements . FM Stainless will become part of The Paterson Group , within our Engineered Solutions division , and will expand our geographical customer base , generate cross selling opportunities , and provide additional manufacturing capacity and capability . The acquisition will be funded from the Group ’ s existing borrowing facilities and is expected to be earnings enhancing to the Group in 2024 .
Notably , five units have commenced production , with nine more expected to begin operations by the end of the March quarter . This prediction follows an expected investment of nearly Rs 16,000 crore by the end of FY24 . Singh reported that selected companies have already invested approximately Rs 12,900 crore , with an additional Rs 3,000 crore expected by the end of FY24 . Regarding the adoption of green steel initiatives , Singh highlighted the recent launch of the first pilot project for the use of green hydrogen in stainless steel production , led by Union Steel Minister Jyotiraditya Scindia . Tata Steel has already conducted trials , with other companies also exploring similar initiatives . The National Mission on Green Hydrogen is supporting pilot projects in the steel sector with a budget of approximately Rs 500 crore until FY30 . Addressing concerns surrounding the Carbon Border Adjustment Mechanism ( CBAM ), particularly its potential impact on Indian steel exports to Europe , Singh stated that consultations are ongoing with the Commerce Ministry . Discussions are being held with the European Union and other relevant agencies to ensure mutually beneficial outcomes . Singh also touched upon the ongoing reviews of Free Trade Agreements ( FTAs ), emphasising the importance of productspecific rules of origin to prevent trade circumvention . Under the PLI scheme , 57 Memorandums of Understanding ( MoUs ) have been executed , committing to an investment of Rs 29,500 crore with an additional capacity addition of 25 million tonnes by FY28 .
PLI to mobilise 10,000 cr investments in specialty steel
Nagendra Nath Singh , Union Steel Secretary , has projected investments totalling Rs 10,000 crore in specialty steel-making by PLI ( Production Linked Incentive ) short-listed companies in the coming fiscal year .
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