ET reported that ArcelorMittal is planning to build a new iron and steel
making facility at Paradip of 3-6 million tonnes per annum capacity. As
per ET report, this is part of ArcelorMittal’s long-term plan to raise
Essar Steel’s annual steelmaking capacity to 12-15 million tonnes from
5.6 million tonnes in two stages, with fresh capital infusion of INR
8,000 crore that will also augment capacity at Essar’s Hazira facility
to 12 million tonnes.
In the first stage the plan envisages raising the capacity to 6.5 million tonne by 2019-20. This essentially revolves around completion of ongoing capex projects that include a coke oven (1.35 million tonne), a second sinter plant (1.7 million tonne), third thin slab caster (1 million tonne), Paradip pellet plant (6 million tonne) and Dabuna beneficiation plant (4 million tonne). It would also include an environmental management plant and infusion of best practices in raw material sourcing, plant operations, sales and product mix, people management, and health and safety. In the second stage, ArcelorMittal plans to expand capacity to 8.5 million tonne by 2024.
The resolution plan specifically states ArcelorMittal hopes to commission additional assets including a 1.2 million tonne coke oven, a 4 million tonne blast furnace and a 5.2 million tonne basic oxygen furnace to raise the capacity. It also wants to use land potentially available at Paradip to add the new iron and steel making unit. Also, to minimise production loss, the plan involves making the DRI modules electric arc furnace inactive when the new integrated plant assets are commissioned in 2021-22.
The investment will be over and above the INR 42,000 crore resolution plan for Essar Steel, which it had agreed to acquire last month.
Source : ET