Steel Authority of India Ltd plans to increase capacity
Steel Authority of India is the state metallurgical company. In accordance with Bloomberg, the company plans to increase capacity for over 10 years. Anticipated production volume will reach 50 million tons per year. It is expected that by 2018, the company by 43% will increase productivity. The annual output of the total of 21.4 million tons of steel. This year, the implementation of this program, the company invests about USD 598 million. Times of India has provided their own data about new projects of the state company. One of them is the joint venture with ArcelorMittal. Under assumptions annual production capacity of the JV will reach 1.2 million tons. The company will focus on the production of cold-rolled steel, special steels. The beginning of the project scheduled for December of this year.
The metallurgists of India expect to take second place among the leading manufacturers of steel products. They plan to leave behind Japan. In accordance with the government’s targeted programme, Indian steelmakers say on the development of the 300 million tons of steel annually. The implementation of this plan is very real. According for 2015 India came in the top three of world leaders-manufacturers. It was first able to stay ahead of manufacturers of the United States, reaching a score of 89.4 million tons. In 2014, this figure was 87.3 million tons.
Meanwhile, ArcelorMittal plans to get rid of its stake in the company Valin Steel. This metallurgical plant is located in Changsha, province Hanani. Today, the Indian company is the largest shareholder of Valin Steel. The cost of 10.08% of the shares will be around 150 million USD. Just as many presumably will pay ArcelorMittal’s local government investment company. In any case, the sales agreement already concluded. The company Valin Steel is focused on the production of hot-rolled and cold-rolled sheet. The company also produces wire, galvanized products, steel tubes, shapes and profiles. The company’s products are readily acquires a building, automobile, bridge-building and shipbuilding sector.
Another project dealt with ArcelorMittal, for the resumption of production by Evraz. The production is in South Africa. ArcelorMittal ally in this matter supports the industrial development Corporation of South Africa.