Luxembourg-headquartered ArcelorMittal has decided to set up a new iron and steel making facility at Paradip of 3-6 million tonnes per annum (mtpa) capacity.
According to an ET report, this is part of the company’s long-term plan to increase Essar Steel’s annual steelmaking capacity to 12-15 mtpa from 5.6 mtpa in two stages, with fresh capital infusion of Rs 8,000 crore that will also augment capacity at Essar’s Hazira facility to 12 mtpa.
It said the investment will be over and above the Rs 42,000 crore resolution plan for Essar Steel, which it had agreed to acquire last month.
“In the first stage the plan envisages raising the capacity to 6.5 mt by 2019-20 on the back of efforts to rapidly restore current assets to reach their maximum potential. This essentially revolves around completion of ongoing capex projects that include a coke oven (1.35 mtpa), a second sinter plant (1.7 mtpa), third thin slab caster (1 mtpa), Paradip pellet plant (6 mtpa) and Dabuna beneficiation plant (4mtpa),” said the report.
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