Friday, August 27, 2010

JSW Steel to add 3.2 mtpa capacity by February

JSW Steel plans to commence commercial steel production at the newly commissioned 3.2 million tonnes per annum plant at Vijayanagar in Karnataka by February.

Mr Vinod Nowal, Director and Chief Executive Officer, JSW Steel, said, “We expect to start the first unit of our new plant at Vijayanagar in September, while the full operations of the 3.2 mtpa plant will be commissioned by February.”

Post completion of the Vijayanagar project, the overall steel production capacity of JSW Steel will increase to 11 mtpa, said Mr Nowal on the sidelines of the company's extraordinary general meeting (EGM) to get the shareholders approval for allocating 14.99 per cent stake to Japanese steel major JFE Steel leading to an equity investment of Rs 4,800 crore.

JSW Steel plans to expand its production capacity to 11 mtpa by 2011 from the current levels of 7.8 mtpa.

It also plans to enhance capacity to 32 mtpa by 2020 through two greenfield projects of 10 mtpa each in Jharkhand and West Bengal.

It recently started work on setting up a 10 mtpa steel plant at Salboni in West Bengal.

The company will invest Rs 35,000 crore in the project.

“The work on the boundary wall has started. We will finalise the design of the steel plant in the next few months and construction will start before end of this fiscal,” Mr Sajjan Jindal, Vice-Chairman and Managing Director, said recently.

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