Posted on 09 Aug 2021
India’s Shyam Steel has approved an investment of $95 million for a brownfield expansion at its Mejia manufacturing unit.
The company is eyeing to increase its rebar production capacity from the existing 200,000 tonnes/year to 500,000 t/y this year, and then to 900,000 t/y in the fiscal year through March 2023, Kallanish notes.
“Demand for TMT bars is on the rise with the government’s thrust on infrastructure projects,” says Shyam director Keshav Beriwala. “We are looking to enhance our production capacity from the current six lakh tonne per annum to nine lakh tonnes over the next two years. This will be a brownfield project as we have land available at our existing project in West Bengal.”
The investment will ramp up sponge iron and billet production, as well as increase the rolling mill capacity by three times, says the company.
"Land procurement has already been completed for the project. Work on the expansion of the unit has started. It is expected to be fully operational by the last quarter of fiscal year 2023," Beriwala adds.
The group is actively looking at options to participate in the bidding process for iron ore mines, to insulate itself from raw material price fluctuations and uncertainties, it says. The company has coal mines in India.
Source:Kallanish
