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Tata Sponge Iron plans to enter into steel making business: Report

06 Nov 2015 Evaluate

Tata Sponge Iron (TSIL) is reportedly planning to enter into steel making business, with an investment of Rs 2,200 crore. The company's board has approved a proposal to go for forward integration of the sponge iron plant with facilities to manufacture 0.7 million tonne-per-annum (mtpa) long products. The steel making, however, would be through the sponge iron route. As part of the steel plant project, facilities like billet caster and waste-based power plant would be developed.

While the present sponge iron plant capacity would be enhanced with setting up an electric arc furnace and two additional kilns, TSIL would not require additional land as the integrated steel plant would come up over the 310 acre premises of the sponge iron plant.

Tata Sponge Iron is engaged in business of manufacturing high-grade sponge iron that is consistent in quality. The company has an annual manufacturing capacity of 390,000 tonnes of sponge iron from its three kilns. Its production plant is situated at Bilaipada in Orissa.

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