The Hindu Business Line : Tata Ryerson to hike steel processing capacity

TATA Ryerson Ltd, a 50:50 joint venture between Tata Steel and Ryerson Tull of the US, on Wednesday announced plans to augment its steel processing and distribution capacity from 0.9 million tonnes per annum at present to 2 mt per annum by 2010. The ramp-up would entail an investment of Rs 220 crore, according to Mr Sandipan Chakravortty, Managing Director of Tata Ryerson Ltd.

Addressing a news conference here on Wednesday, Mr Chakravortty said part of the proposed investment had been made. The company's growth plans include installation of CR processing facilities in Faridabad and Pune and addition of another 15 marketing locations by 2007. The company also proposes to set up a processing facility either in Chennai or Bangalore "depending upon tax implications".

Mr Chakravortty said with the steel sector on the upswing in India, several global steel processing majors would set up operations here in the months ahead. On its part, Tata Ryerson, too, is contemplating setting up operations beyond the shores of India. However, plans in this regard are on the drawing board at present and a decision on this score would be taken next year.

Already, the company has set up a 60,000 tonnes per annum capacity, fully automated rebar processing facility in Faridabad to cater to the infrastructure demands of the National Capital Region. Rebar solutions for construction projects are being offered under the PROBAR brand even as plans have been firmed up to set up similar facilities in other parts of the country in the years ahead.

According to him, Tata Ryerson clocked a turnover of Rs 588 crore in 2004-05 and accounted for 50 per cent of the domestic market for steel products processing in the organised sector. The company is hopeful of generating a turnover in excess of Rs 800 crore in the current fiscal and around Rs 1,000 crore in 2006-07, Mr Chakravortty said.

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