JSW Steel to start production at new Dolvi, Vijayanagar plants in H1 2022
2021-01-28 10:23:59 [Print]
JSW Steel plans to complete construction of its new plants - 5 million tonne (MT) in Dolvi, Maharashtra and 1 MT in Vijayanagar, Karnataka, which was delayed due to shortage of workers during the lockdown, in the first half of 2022, the company's joint managing director and group chief financial officer Seshagiri Rao said.
JSW Steel is targeting to achieve 29 MT production capacity with the completion of the greenfield capacities and acquisition of Bhushan Power and Steel (BPSL).
The company had offered about Rs 19,700 crore for the acquisition of BPSL, but the matter is before the Supreme Court as the Enforcement Directorate (ED) wanted to attach the assets of bankrupt firm in an alleged money laundering case against the old management.
The steelmaker is also planning to complete the downstream capacity expansion to 11 MT from 5 MT along with the Dolvi and Vijayanagar capacity construction. The company has 12 MT and 5 MT capacity in Vijayanagar and Dolvi, respectively. It also has a 1 MT plant in Salem.
"We are also continuing captive iron ore integration with the steel plants as it will reduce costs of production. The other cost reduction projects like pallet plant, coke oven batteries, power plants will be commissioned in this year," said Rao.
JSW Steel will commence brown field expansion of JSW Ispat and BPSL once these projects are completed. Ispat, which JSW acquired through bankruptcy proceedings, has turned around with net profit of Rs 29 crore in third quarter. With the completion of acquisition of BPSL, JSW will have 28-29 MT capacity in India, said Rao.
JSW Steel is targeting to achieve 29 MT production capacity with the completion of the greenfield capacities and acquisition of Bhushan Power and Steel (BPSL).
The company had offered about Rs 19,700 crore for the acquisition of BPSL, but the matter is before the Supreme Court as the Enforcement Directorate (ED) wanted to attach the assets of bankrupt firm in an alleged money laundering case against the old management.
The steelmaker is also planning to complete the downstream capacity expansion to 11 MT from 5 MT along with the Dolvi and Vijayanagar capacity construction. The company has 12 MT and 5 MT capacity in Vijayanagar and Dolvi, respectively. It also has a 1 MT plant in Salem.
"We are also continuing captive iron ore integration with the steel plants as it will reduce costs of production. The other cost reduction projects like pallet plant, coke oven batteries, power plants will be commissioned in this year," said Rao.
JSW Steel will commence brown field expansion of JSW Ispat and BPSL once these projects are completed. Ispat, which JSW acquired through bankruptcy proceedings, has turned around with net profit of Rs 29 crore in third quarter. With the completion of acquisition of BPSL, JSW will have 28-29 MT capacity in India, said Rao.
