Indian private steel company Tata Steel plans to increase steel production to 30 million tonnes per annum by 2025 from 20 million tonnes currently.
Tata Steel's flagship plant in Jamshedpur has a steelmaking capacity of 11 million tons per year, and its plant in Kalinganagar is capable of producing up to 3 million tons of steel per year. Over the past year, the company acquired 5.6 million tonnes of capacity from Bhushan Steel and another million tonnes from Usha Martin's steel business.
The Kalinganagar plant is currently expanding its capacity to 8 million tonnes per year, with a cold rolling mill going into operation in April 2020-March 2021, followed by other equipment, including a new blast furnace.
Tata Steel plans to modernize the Jamshedpur plant, as well as invest in expanding the extraction of raw materials from its own iron ores and coal mines. Tata Steel currently provides 100 percent of the iron ore supply for the Jamshedpur and Kalinganagar smelters and partially extracts the ore for the Bhushan Steel smelter from its own mines. Tata coal mines are capable of meeting about 27 percent of the needs of the Jamshedpur and Kalinganagar coal plants.
Tata Steel is considering expanding its steel plant in Jamshedpur to 13 million tonnes per year.
“We recognize that there is significant potential to increase steel demand in India over the long term, given that steel consumption per capita in 2018 was less than one third of the global average,” Tata Steel said in a press release. ...
Various government initiatives, including Made in India projects, increased infrastructure spending and increased focus on rural development are likely to support increased domestic steel demand, providing opportunities for domestic steel players, ”said in the company.
Major Indian steel companies continue to increase their production capacity, despite the global trend to reduce capacity amid surplus supplies to global markets.
New Delhi plans to increase its annual steel production to 300 million tonnes by 2031, relying on the industrial and construction sectors to maintain strong long-term growth. Steel demand is expected to grow by about 6-7 percent in fiscal 2019-20, after rising 7.5 percent in 2018-19.
