JSPL to increase Oman plant capacity to 5 million tonne by 2016

Jindal Steel and Power (JSPL), one of the leading player in Steel, Power, Mining, Oil & Gas and Infrastructure plans to expand the capacity of its 1.5 million tonne steel plant in Oman to about 5 million tonne by 2015-16.

In July last year, through its wholly-owned subsidiary Jindal Steel & Power, Mauritius (JSPLM), JSPL had acquired Oman's Shadeed Iron & Steel Co. LLC (Shadeed) for $500 million, which started commercial production four months ahead of schedule in December 2010. The company is pressing ahead with the next phase of expansion. The plant will produce 2 million of finished steel in the second stage and in the third phase, company is hopeful of producing 4-5 million per annum of steel in the next 4-5 years time.

Jindal Shadeed has an important role to play in JSPL’s overseas expansion plans.  The acquisition is a major step in the international strategic expansion for JSPL, which includes setting up of 1.7 million steel plant, 6 million DRI plant and 10 million iron ore pelletisation plant in Bolivia with an investment of $2.1 billion (about Rs 9,500 crore)

In India also, JSPL is undertaking expansion of its steel operations, which includes setting up new gas-based steel units. At present, JSPL has an annual steel production capacity of 3 million tonne in Chhattisgarh. The size of the plant is being doubled at an estimated investment of Rs 10,000 crore. The company is also investing an estimating Rs 44,000 crore on two upcoming plants in Orissa and Jharkhand.