NEW DELHI: Galvanised steel manufacturer Uttam Galva on Wednesday said it has entered into a joint venture with UK-based trading company, Liberty Commodities, to build two new steel re-roller mills in Ghana at an investment of $60 million (about Rs 270 crore).

The joint venture company, Ghana Iron and Steel company (Gisco), would invest $20 million in a 70,000 tonnes per annum hot-dip galvanising line and $40 million in a 2,00,000-2,50,000 tonne per annum cold reversing mill.

"Investment in Ghana would be made through a special purpose vehicle. Debt equity ratio for investment in Ghana would be 2:1," Uttam Galva Director Commercial Ankit Miglani told media.

He said while the hot-dip mill is expected to be operational by the end of this year, the cold-reversing mill is planned for 2008. Majority of the hot-dip steel produced would be sold in the local market with some exports in small quantities to other West African states.

The two companies are also discussing the possibility of setting up a galvalume (aluminium, zinc) coating line, he said.

"There are good synergies in the project. Uttam Galva has the required expertise in the production process and Liberty has strength in Africa," he added.