JSW Steel to spend ₹7,500 crore to raise production capacity

JSW Steel to spend ₹7,500 crore to raise production capacity

10th july 2018

JSW Steel, a part of the diversified $13-billion JSW Group, announced on Wednesday that it planned to increase the annual steel manufacturing capacity of JSW Vijayanagar Works in Karnataka to 13 million tonnes per annum (MTPA) at a cost of ₹ 7,500 crore.
The expansion is likely to be over by March 2020, according to a company statement. At 12 MTPA currently, JSW Vijayanagar Works is the largest state-of-the-art single location steel manufacturing unit in India.
The company will also set up a 1.5 MTPA coke oven plant at Vijayanagar to bridge the current and expected gaps in coke availability. This is likely to be commissioned by March 2020.
The coke oven unit is expected to provide significant cost savings for the company over the longer term. It will also modify and enhance capacity of its steel melting shop, the flat and long products mills, along with allied facilities to utilise this additional hot metal.
The company’s current project to revamp and upgrade the capacity of blast furnace-3 at JSW Vijayanagar Works is on track, a release said..
“With steel consumption in India expected to grow, these capacity enhancement initiatives will ensure our readiness to promptly service emerging customer demand,” said Vinod Nowal, deputy managing director, JSW Steel.
JSW Steel has also started operations at two iron ore mines (Tunga & Nandi Mines) in Karnataka for which it has already received statutory clearances.
The cumulative capacity of these two iron ore mines is 0.71 MTPA. For the remaining three mines, JSW Steel expects statutory clearances and approvals during the current fiscal.
The annual production capacity of the five mines acquired by JSW Steel, through 2017 auction, is approximately 4.66 MTPA. Once all five mines are operational, they are expected to fulfil approximately 20% of the iron ore requirement of JSW Vijayanagar Works steel manufacturing unit.
All these five mines are located within 20-35 kilometers from the Vijayanagar unit giving it an advantage of lower logistics cost. Historically, JSW Steel was completely dependent on the external market to meet its iron ore requirements.
JSW Steel remains strategically focussed on enriching its product mix by increasing the share of value added & special steel products, according to the statement.
Source: THE HINDU