Essar Steel has planned to
expand its steel melting capacity by 1 million tpa after its ongoing expansion
plan is commissioned later this year. The company is increasing its capacity to
3.6 million tpa from 2.4 million tpa by increasing the capacity of each of its
three electric arc furnaces from 0.8 million tpa to 1.2 million tpa. Danieli of
Italy is associated with the project engineering of the ongoing expansion
project.
The
1 million tpa expansion project, to cost Rs.2,000 crore, would take the final
steel capacity to 4.6 million tpa. The project would be financed through
internal accruals and debt.
Meanwhile,
Essar Steel has planned to acquire the 51 per cent stake of Stemcor (of UK) in
Hy Grade Pellets. It is also planning full acquisition of Steel Corporation of
Gujarat that manufactures downstream value added products.
Related
News:
Mecon
draws plans for Essar Steel expansion (05-Jul-04)