JSW Steel’s expansion plan to increase its crude steel production capacity from 14.3 MnT to 18 MnT by December, 2015.
India’s third largest steel giant, JSW Steel has recently announced that its much delayed capacity expansion plans at Vijaynagar, Karnataka and Dolvi, Maharashtra will be soon executed by December, 2015.
Vijaynagar, Karnataka Expansion Plan
10 MnT Vijaynagar works was slated for its capacity expansion by additional 2 MnT making it total 12 MnT pa in FY14. The total investment proposed in the same was INR 26.95 bn. However, due to continued iron ore shortage in India (result of mining ban in Karnataka), the plan was put on hold during the year.
The company was relying on import from Australia, Brazil, and South Africa in order to meet its raw material requirements. However, NMDC’s recent price correction in iron ore fines coupled with the Supreme Court’s announcement to lift mining ban on 15 (grade C) mines in Karnataka, iron ore availability seems to be improving. Thus, JSW Steel’s management confirmed that its long held expansion plan is slated to be completed by December, 2015.
The Vijaynagar works produces range of products such as slabs, billets, HRC, CRCA coils and sheets, wire rods and bar rods.
Dolvi, Maharashtra Expansion Plan
The Dolvi unit in Maharashtra was acquired by JSW Steel from debt-laden Ispat Steel in 2010. After its turnaround, the company in 2014 rolled out its capacity expansion plan to 5 MnT from the current 3.3 MnT with a proposed investment of INR 33 bn. As per the management, plan is on track and is expected to be completed by December, 2015.
Dolvi plant specializes in manufacturing of CRC used in automotive, industrial, and consumer durable sector.
Currently, the Indian steel industry is tussling with problems like subdued demand and cheaper imports from China, Japan, and Russia. Thus, JSW is concentrating on expanding current plants capacity rather than starting any expensive greenfield project. The company is focusing more on increasing sales in domestic market by adding value added and special products in its product mix.
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