Kalyani Steels Enters inTo A Joint Venture Agreement With Gerdau S.A., Brazil

Kalyani Steels Ltd has informed that the Company has entered into a Joint Venture Agreement with Gerdau S.A., Brazil.As per the said agreement signed on June 22, 2007 both Companies will have an equity partnership of 45% each in SJK Steel Plant Ltd (SJK Steel), Tadipatri, District Anantapur, Andhra Pradesh. The remaining 10% will be owned by other investors.SJK Steel which was recently acquired by the Company is an integrated Alloy Steel Plant with an annual capacity of 275,000 TPA.The Gerdau Group is a Brazilian steel Company that is currently the 15th largest international steel producer. In 2006 it reported production of 15.6 million metric tons and gross revenue of R$ 27.5 billion. It has 32,000 employees and is present in twelve countries : Argentina, Brazil, Canada, Chile, Colombia, the United States, Spain, Mexico, Peru, Dominican Republic, Uruguay and Venezuela.