The Hindu Business Line : Alloy Steel set to post marginal net profit

After a decade of losses, Alloy Steel Plant, the Durgapur-based speciality steel plant belonging to Steel Authority of India Ltd (SAIL), is now set to record a marginal net profit in 2005-06.

According to a press release issued by SAIL, ASP's turnover in the last financial year grew by 15 per cent to Rs 650 crore. Though accounts are yet to be finalised, sources said that the plant would register a nominal net profit.

The plant also recorded its highest saleable steel production and despatch at 7,840 tonnes and 8,008 tonnes respectively. In March , the plant produced 14,785 tonnes of saleable steel, which is its best since inception. "The synergy with DSP (Durgapur Steel Plant) saw ASP obtaining a record 21,487 tonnes of special steel ingots from DSP, which was 22 per cent higher than the previous year," the release stated. Meanwhile, the modernisation programme of ASP, which is worth Rs 460 crore has already started. Once the modernisation programme is over, liquid steel production of ASP would increase to 5 lakh tonnes from the existing level of 1.64 lakh tonnes. Production of stainless steel slabs will increase by 2 lakh tonnes.

"A significant aspect of ASP's modernisation is that it would bring great synergy between ASP and Salem Steel Plant (SSP)," the release stated. Approximately 2 lakh tonnes of stainless steel would be sent to SSP for production of hot and cold rolled coils.

"We envisage a saleable steel production of 4.31 lakh tonnes by 2012 when the upgradation is over. We would lay more thrust on capacity utilisation of the existing units and de-bottlenecking of existing processes," Mr N. P. Jayaswal, Executive Director, ASP, stated.

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