Hi-Tech Pipes on Monday said it has signed an agreement with the UP Government to set up a steel manufacturing facility in the state at an investment of Rs 510 crore.
The Memorandum of Understanding (MoU) has been signed under the Invest UP Programme of the Uttar Pradesh Government, the steel pipes maker said in a statement.
"Hi-Tech Pipes has signed a MoU with the UP Government for setting up a mega manufacturing facility. Under this MOU the proposed Investment will be of Rs 510 crore to be invested in a phased manner," it said.
The favourable business environment and the special incentive packages offered by the UP government will additionally help the company to strengthen its position in the steel tubes and pipes, and flat-steel processing industry.
Ajay Kumar Bansal, the Managing Director of Hi-Tech Pipes Ltd said the company has been present in the state for more than three decades.
"The agreement with the state government will further reinforce our commitment to create employment. The transaction (of Rs 510 crore) will support the capacity expansion plans and to strengthen our position in the segment," he said.
Hi-Tech Pipes Ltd recently began the commercial production of a colour coating line at its plant in Sikandrabad, Uttar Pradesh with an annual capacity of 50,000 tonne.
The company owns and operates integrated manufacturing facilities at Sikandrabad in Uttar Pradesh, Sanand in Gujarat and Hindupur in Karnataka.
Besides steel pipes, the company also produces hollow sections, tubes, cold rolled coils and strips, road crash barriers, solar mounting structures and a variety of other galvanised products.
Shares of the company were trading at Rs 858.30 apiece, up 0.67 per cent from its previous close.
