The Hindu Business Line : Electrotherm to set up pig iron unit in Gujarat

ELECTROTHERM India Ltd is entering the iron and steel sector and is setting up a pig iron manufacturing facility in Gujarat and eventually plans to integrate the whole production chain.

Company officials told Business Line that the company had undertaken an Rs 125-crore expansion project in order to take advantage of the growing demand for iron and steel products in the market.

The expansion plan is divided into three phases. In the first phase, the company is setting up a 70,000 tonnes per annum cast iron manufacturing facility in the Kutch district of Gujarat to take advantage of the tax holidays available there. The project is at an advanced stage of implementation and is expected to commence production by the end of February, officials said.

In the second and third phase, the company plans to take up forward and backward integration, respectively.

After commencing production of cast iron, in the second phase the company would be setting up a cast iron pipe manufacturing facility. The gestation period for this project would be around eight months and is expected to start production by October this year.

In the third phase, the company plans to follow up with a sponge iron manufacturing facility. It hopes to begin sponge iron production by the end of fiscal 2005-06.

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