Posted on 12 Aug 2021
Vedanta Limited plants to invest $20 billion across its businesses, which includes a doubling of its steelmaking capacity.
“The company has planned a capex of $5 billion over a period of three years. In steel, we intend to double our capacity," says chairman of Vedanta Resources, Anil Agarwal. “Alongside, our acquisition of FACOR and its niche ferro-alloys business is yet another example of our diversification and future readiness”.
The company is eyeing capacity expansion in its finished long products and ductile iron segment to 5 million tonnes/year. It expects to further enhance facilities to produce high-carbon electrical steel and other value-added products, Kallanish notes.
“In the first phase, we are working to build capacity to 3m t/y (capacity from 1.5m t/y now) and have invested INR 3,000 crore ($402.81 million) for the same. In the second phase, we will be taking the capacity to 5m t/y,” says Vedanta chief executive iron and steel Sauvick Mazumdar.
Vedanta group-acquired ESL Steel Limited saw steel output rise 8% on-year to 289,000t in the fiscal first quarter ended June 2021, against 267,000t last year. However, production declined by 9% on-quarter, says the company’s earnings report.
The firm produced 92,000t of wire rod, 89,000t of TMT bar, 52,000t of pig iron, 31,000t of ductile iron pipe and 24,000t of billet (see Kallanish passim).
Source:Kallanish
