Tata Steel Targets Expansion of Crude Steel Capacity to 30 Million Tonnes

SEATTLE (Scrap Monster): Tata Steel has announced plans to expand its crude steel capacity in India. The private sector firm eyes significant expansion of capacity to 30 million tonnes per year (tpy) by 2025. It must be noted that the company’s current production capacity stands at around 20 million tpy.

The company’s Kalinganagar plant has a current capacity of 3 million tpy. The expansion works are already underway at the plant, which will in turn lift the capacity to 8 million tpy. Tata Steel aims to raise $600 million in FY20 to fund the proposed expansion. The work comprises of commissioning of a cold-rolling mill, blast furnace and other modern equipment in phased manner. Also, the company’s flagship plant in Jamshedpur, with a nameplate capacity of 11 million tpy, will be expanded to 13 million tpy.

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The acquired businesses of Bhushan Steel with a capacity of 5.6 million tpy and that of Usha Martin with a capacity of 1 million tpy will also contribute to the company’s capacity expansion plans.

Tata Steel foresees significant potential for increase in steel demand in the country over the long term. It must be noted that the per capita steel consumption in India during the previous year was less than one-third of the world average. Newly announced government projects, increased spending on infrastructure and thrust on rural development are likely to boost domestic steel demand, it said.