JSPL's Multi-Billion Dollar Investment to Boost Capacity

SEATTLE (Scrap Monster): Jindal Steel & Power Limited (JSPL) announced plans to invest $2.4 billion over the next six-year period, aimed at boosting capacities at its plants. The company cited improved steel demand, primarily on account of market recovery following Covid-19 pandemic.

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The steelmaker plans to increase its total production capacity to 15.9 million tonnes by March 2025, from the current capacity of 8.6 million tonnes. It plans to more than double its pellet production capacity to 21 million tonnes by 2024. It intends to expand its production capacity at Angul steel plant, by foraying into container manufacturing. The company is also setting up a 2.25 million tonnes hot rolled coil plant, which will mainly target export markets, in the Southern Indian state of Andhra Pradesh.

The company had reduced its debt levels significantly by more than 60% since last year. The company’s expansion plans are based on hopes of substantial jump in steel consumption in future, mainly triggered by the government’s infrastructure plans. The company expects annual demand growth of up to 9% by 2025. It must be noted that JSPL had clocked production of 2.01 million metric tons in the initial quarter of FY22.