Tata Steel Eyes Expands Steel Production Significantly

Tata Steel has announced plans to expand its crude steel production capacity in India. The private sector firm expects a significant increase in capacity to 30 million tonnes per annum (t /a) by 2025. It should be noted that the current production capacity of the company is about 20 million tons per year.

The company's Kalinganagar plant has a current capacity of 3 million tons per year. Expansion work is already underway at the plant, which, in turn, will increase the capacity to 8 million tons per year. Tata Steel plans to raise $ 600 million in FY20 to fund the proposed expansion. The work includes the phased commissioning of a cold rolling mill, a blast furnace and other modern equipment. In addition, the company's flagship plant in Jamshedpur, which has a capacity of 11 million tons per year, will be expanded to 13 million tons per year.

The acquisitions of Bhushan Steel with an annual capacity of 5.6 million tonnes and Usha Martin with a capacity of 1 million tonnes a year will also contribute to the company's expansion plans.

Tata Steel foresees significant potential to increase demand for steel in the country in the long term. It should be noted that per capita steel consumption in India during the previous year was less than a third of the global average. Recently announced government projects, increased infrastructure spending and a focus on rural development are likely to boost domestic demand for steel.