OREANDA-NEWS. April 22, 2011. Tata Steel Limited (TSL) and Krosaki Harima Corporation (KHC) have signed definitive agreements today to induct KHC as a strategic partner in Tata Refractories Limited (TRL). Under this arrangement, KHC will acquire 51% equity stake out of TSL’s current 77.46% stake in TRL. KHC is an associate company of Nippon Steel Corporation of Japan. The transaction is based on an equity valuation of TRL of approximately Rs 1130 crores and is subject to approval of relevant regulatory authorities in India and Japan.

KHC is a leading refractory player with global presence and advanced technology. With this association Tata Steel believes that TRL will be able to access latest technology and diversify its product offering. It will also provide TRL an opportunity to easily access markets outside India. TSL will continue to hold 26.46% equity stake and as a key customer, hopes to benefit from improved refractory technology by this association with KHC.

Mr. Hemant Nerurkar, Managing Director of TSL said "I am happy with this association with Krosaki Harima and I am sure this partnership will propel the business to greater heights in future".

Mr. Yasuo Hamamoto, Representative Director and President - KHC said "We are delighted that we will be managing TRL in close association with Tata Steel. While TSL is a technologically advanced steel-maker, TRL is the largest refractory manufacturer in India.

This partnership is a big honor for us and we will put our best efforts to develop TRL in future".