Kalyani Steel Seeks Opportunity to Establish a Plant in Western Asia

Kalyani Steel, part of the largest steel group Kalyani, is considering building a new plant in Western Asia on a plot of land close to a port and low-cost energy sources. Kalyani Steel in Pune is one of the leading carbon and alloy steel forging electric arc furnaces and produces almost all types of steel.

Goyal, Managing Director of RK, said: “The plant can be built anywhere. We are evaluating several countries. It could be in Saudi Arabia, Oman and even Iran, if the political situation there improves. Our plan is currently at the research stage and suggests turnkey repair of premises . Land in the port will help to directly unload material from the ship, reducing costs ".

The plant should be automated to reduce the number of workers and have a throughput of at least five million tons per year, including flat and long products, Goyal said, without disclosing investment details. Although the demand for the company's products exists mainly within the country, tough conditions are forcing resort to the construction of a plant in Western Asia, he added.

For steelmaking in India, obtaining iron ore has become almost impossible, and coking coal or coke has long been imported, even water is a problem. So why create another plant in India? The company has iron ore mines in the Bellari Hospet region of Karnataka that are not fully operational due to a lack of ore. The company will make a final decision in the second half of this year, pending constructive actions from the government that can convince them to build a plant in their country.