Mumbai: JSW Steel plans to commission first phase of its new 2.3 million tonnes plant by this September. The plant will produce high-grade automotive steel. The new plant will gain an investment of Rs4,025 crore and is being developed in technical collaboration with Japan’s JFE Steel Corporation.
“Of the 2.3 million tonnes (proposed capacity) we will commission Phase-I of 1 million tonnes in September and the second phase will come in next year at the same time,” says JSW Steel’s Joint Managing Director Seshagiri Rao MVS.
The new capacity will help JSW in meeting the demand of automobile industry for high end products like dual-phase steel and strip steel as well. Currently, most of the demand for such products is met through imports as there is not enough domestic manufacturing capacity. According to industry estimates, annual domestic demand of automotive steel is around 8-10 million tonnes.
The project is being funded with a debt to equity ratio of 2:1. This means that out of Rs 4,025 crore investment, company has taken Rs 2,675 crore debt and is meeting rest of the investments, at Rs 1,350 crore, through internal accruals.
EPC News Bureau
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