Jindal Steel to Build New 2.5 Mtpa Steel Plant

SEATTLE (Scrap Monster): Jindal Steel and Power Limited (JSPL) announced plans to build a new steel plant with production capacity of up to 2.5 million tonnes per annum (mtpa). The facility will be built in Patratu in Ramgarh district of Jharkhand, where the company already has a wire rod mill, a bar mill and a rebar service center.

Hervinder Singh, President - Mining and International Projects, JSPL stated that the proposed brownfield project is presently in the “active consideration” stage. The setting up of the steel plant will entail backward integration and will help in feeding the mills with steel, he said. The basic engineering works have already been completed, he added.

The project may require an investment of a few thousand crores. Upon commencement of works, the plant will take at least two to three years to become operational.

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Commenting on the company’s expansion plans, he said that the Angul plant with current capacity of 5 mt could be scaled up to 20-30 mt by 2030-’35. However, the present focus remains on consolidating its operations.

According to the company, demand has started showing signs of pickup. The future demand growth will be led by infrastructure and construction sectors. There could be some headwinds on accont of recent outbreak of coronavirus, but impact on long steel is likely to be minimal due to the country’s immense growth potential.