India's steel major Tata Steel announced on Thursday the acquisition of Thai Millennium Steel, the largest producer of construction steel in Thailand, for 175 million dollars.

The Indo-Asian News Service quoted Tata Steel managing director B Muthuraman as saying that in Kolkata they would further increase the firm's capacity by infusing more funds into it.

The agreement was signed between Tata Steel deputy managing director T. Mukherjee and R. Dhamari, president, Cementhai Holding Company, a Thai cement group firm.

According to the agreement, Tata Steel will have 40 percent holding in Millennium Steel.

Tata Steel will buy 24.9 percent more holding in Millennium Steel through fresh equity shares. The deal is, however, subject to regulatory approvals in both the nations.

Tata Steel, that aims at strengthening its grip in Asia, plans large expansion in the continent in the next 15 years.

Source: Xinhua