ArcelorMittal may split Jharkhand plant into two
As a part of its revised plan to focus on smaller plants, ArcelorMittal has split its proposed 12 million tonne per annum steel plant in Jharkhand into two.
As per report, it has decided to set up a 6 million tonne per annum plant at Petarwar in Bokaro district and it will look for a separate location in Jharkhand itself for the remaining capacity.
A spokesperson of the company told Business Standard that “As per the revised strategy, we want to start production as soon as possible; therefore, we are looking at developing smaller steel plants.”
The company has started acquiring 2,500 acres of land in Petarwar for its plant. It hopes to acquire 1,000 acres by this December and the rest by the first few months of 2011. The company, according to its original MoU with the state government, had asked for 11,000 acres of land for its 12 million tonne per annum plant.
It said the 6 million tonne per annum plant would be built in two phases of 3 million tonne per annum each. It said that “The land acquisition has already begun and we are targeting to complete the process by early 2011. The plant construction should start by mid 2011. The steel production at the site from the first phase of 3 million tonne per annum is expected to commence in 2013.”
The spokesperson said the state government itself advised the company to look at the land in Petarwar as there was enough water to set up at least a 3 million tonne per annum plant. The spokesman said that “Our feasibility report shows a larger plant can be set up at the site and, therefore, we have started to acquire 2,500 acres of land in the region. Bokaro site will see a 6 million tonne per annum plant from ArcelorMittal.”
Earlier this week, Mr LN Mittal chairman and CEO told the Financial Times in Tokyo that “My plan is now to have two to four sites rather than concentrate everything on large plants.”
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