Essar revamps foreign biz.

The Essar group is putting more money into its two struggling units in North America, cutting costs in its Stanlow refinery and has sold a part of its outsourcing business for $610 million.

On July 16, the Essar group announced it would add $300 million more into new equity of its US-based steel company, Algoma, including $100 million before financial restructuring is approved by a bankruptcy court. The infusion comes within months of the group investing $150 million in Trinity Coal, which helped the company emerge from bankruptcy.

'The fund infusion by the promoters will help these companies to continue operations,' said a Mumbai-based banker who did not wish to be named.

BS