Concerns raised by a paper manufacturing plant at Richards Bay Municipal area in South Africa has made Tata Iron & Steel Co (Tisco) shift its 1.2 million tpa ferrochrome smelter project to an alternate site. Tisco had been awaiting a positive record of decision, however, a neighboring paper manufacturing company around the place in Richards Bay raised a major concern stating that the perception of their customers mainly in food packaging industry would be affected adversely if a ferrochrome plant is set up next to it.

The project is estimated to cost Tisco around Rs.250-300 crore. The company has plans to enhance the plant capacity to 2.4 million tpa in the second phase of the project. The construction work for the project is expected to take around 16 months. Thus the plant commissioning, which was earlier expected to take place in the second quarter of 2005-06 is now being expected to take place by the first quarter of 2006-07.