The Hindu Business Line : Essar Steel raises Hazira capacity to 4.6 mt

Essar Steel today announced completion of its expansion plans at its Hazira Complex in Gujarat taking the total capacity to 4.6 million tonnes per annum (mtpa).

The second phase of the Essar plant was completed in 18 months with an investment of Rs 1,975 crore.

The company intends to position itself as a low cost, high quality and value-added producer for the niche, high-end markets in India and abroad, the company said in a release.

The expansion makes Essar Steel the largest producer of flat steel in the private sector, accounting for close to 23 per cent of the country's flat steel capacity.

It has also installed two more modules for HBI/DRI production, increasing total capacity to 5.5 mtpa.

Value-added products

It also increases the share of value-added products in the company's portfolio to 75 per cent from the existing 45 per cent and would help to reduce imports of critical special grades of steel meant for sophisticated applications.

It also expects a quantum jump in exports of its products, the release said.

According to Mr Prashant Ruia, Director of the Essar Group, "We are extremely pleased that this capacity expansion will make India's position stronger in the international steel markets. This expansion and modernisation puts Essar Steel in the premium league of high-end steel producers. We are privileged to be at the core of India's economic development at a time when the country is being recognised as one of the fastest growing economies in the world."

The expansion entailed adding a new electric arc furnace, a third caster, RH degasser and allied equipment. To meet the requirements of the expanded steel capacity, infrastructure facilities have also been enhanced.

This includes a captive power plant of 500 MW capacity, increase in capacity of the port to 12 mtpa and allied machinery and equipment workshops, he said.