JSW Steel is all set to expand value-added steel production capacity to 5 million tonne per annum from the present 3.5 million tonne at its Vijayanagar plant in Karnataka. The company will invest Rs 2,500 crore on the project.
“We are currently producing 3.5 million tonne per annum value-added steel at our cold rolled mill (CRM) at Vijayanagar. We started the CRM unit with 2.5 million tonne and we are in the process of expanding value-added steel capacity. The work will start this year and completed in two years,” said Sajjan Jindal, chairman, JSW Steel.
He said the company supplies value-added steel for use in automobile industry. At present, JSW Steel operates a 10 million tonne per annum steel plant at Vijayanagar in Ballari district of Karnataka. Its combined capacity of steel making is 14.3 million tonne and it operates other two steel plants at Dolvi in Maharashtra and Salem in Tamil Nadu.
Jindal said the company is also planning to expand the capacity of its steel plant in Karnataka at an estimated cost of Rs 30,000 crore.
“We are still keeping it on the drawing board as we do not have access to captive mines in the state. We are waiting for auction of mines under the new MMDR Act and also some of the C category mines in Karnataka. We will bid for both fresh mining leases and C category mines. Once we are sure of guaranteed supply of raw material, we will go ahead with the further expansion.” said Jindal.
The automobile industry imports a large quantity of auto grade steel. However, JSW Steel has started producing the auto-grade steel and electrical steel at its Ballari plant a year ago and already supplies to global auto majors like Hyundai, Honda, Toyota, Nissan and Indian companies like Maruti and Bajaj among others.
“All these automakers are buying from us. It takes at least six months to one year to get the approval from customers who are testing our auto-grade steel. There will be more buyers later this year,” Vinod Nowal, deputy managing director, JSW Steel, said.