Surana Industries Ltd (SIL), manufacturers of steel and iron, on Friday announced that it has signed an agreement with Beijing Shougang Machinery and Electric Company Ltd, Beijing. SIL has placed an order worth $14.58 million with the Chinese company for bar and wire rod mill to be deployed at its Rs 473-crore integrated steel plant in Raichur, Karnataka.
Through this agreement the Chinese company will design, manufacture supply plant and machinery, equipment with auxillaries, automation and application software for the 2,00,000 tonne per annum bar and wire rod mill, which is expected to be operational by September 2008.
Commenting on this agreement, Dinesh Surana, managing director of SIL, said: “We are very happy to be associated with the Chinese company, who are one of the leading players in the iron and steel industry. Their professional expertise and their vast experience in this field is one of the primary reasons for us to choose the company.” SIL has clocked a turnover of Rs 778 crore for the last financial year with a net profit of Rs 30 crore, Surana said.
The Raichur plant will have the capacity to produce 1,28,000 tonne of sponge iron, 2,25,000 tonne of steel melting shop and 2,00,000 tonne of rolling mill annually. The plant will have 35 MW captive power plant. The Karnataka government has allotted a total of 300 acres land in Raichur for this project.
The integrated steel complex is being set up to manufacture special steels mainly meant for automotive industries. It would create job opportunities to more than 1,200 people both skilled and unskilled persons.