The Hindu Business Line : Alloy Steel Plant reports Rs 3-cr net in first quarter

Growth plans
To enhance liquid steel production to 5.34 lakh tonnes per annum from 1.64 lakh tonnes per annum.
Similarly, production of stainless steel slabs will be up to 1.9 lakh tonnes.

Kolkata , Sept. 2

Alloy Steel Plant (ASP), belonging to Steel Authority of India Ltd (SAIL), has registered a net profit of Rs 3 crore in the first quarter of 2006-07.

According to a press release issued by SAIL, ASP made a net profit of Rs 19 crore (excluding all corporate taxes) in 2005-06 after years of losses. In fact, in its entire history only in 1995-96, ASP managed to record an annual net profit of a few lakhs of rupees.

Steel production

"The plant is on a new high. Total saleable steel production in the first four months of 2006-07 jumped 16 per cent ending at 44,715 tonnes against 38,694 tonnes in the corresponding quarter of 2005-06," the release stated.

Similarly, the crude steel production during this period went up by 3 per cent to 49,133 tonnes. Liquid steel production also increased by 3 per cent and ended at 51,732 tonnes. Growth in sales is 23 per cent at 45,283 tonnes against 36,912 tonnes in the previous year.

"The plant's turnover has improved to Rs 245 crore, which is 20 per cent more than that achieved in the corresponding period of the previous year," the release added.

Plant upgradation

ASP's modernisation is already on and the commissioning of new electric arc furnace, argon oxygen decarburisation unit and cryogenic air separation plant is likely to be completed shortly.

This will be followed by an upgradation of forge shop and heat treatment facilities to pave way for complete manufacturing facilities for forged, machined work rolls for rolling mills of steel plants.

ASP wants to enhance its liquid steel production to 5.34 lakh tonnes per annum from the present level of 1.64 lakh tonnes per annum. Similarly, production of stainless steel slabs will be up to 1.9 lakh tonnes and the long products comprising blooms, rounds, billets and forgings will be to the tune of 2.7 lakh tonnes.

"We envisage a saleable steel production of 4.63 lakh tonnes by 2011-12, when the expansion and modernisation projects are completed," Mr N.P. Jayaswal, Executive Director of ASP, stated.

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Alloy Steel Plant reports Rs 3-cr net in first quarter