Tata Steel to expand tubes capacity

The steel tube manufacturing division of Tata Steel will be doubling its capacity at a cost of Rs 130 crore over the next two years. The division would increase exports share to 10 per cent of total output by 2006.

The tube manufacturing unit may increase production from the present 200,000 tons per annum to 400,000tpa., said Tata Steel's tubes division chief executive S Manzar Hussain.

"In the current fiscal year we will invest about Rs 20 crore for the modernisation of the existing plant. We expect to complete the modernisation work within the first six months of the current fiscal year," Hussain said. The balance amount would be invested over two years for augmenting the production capacity.

The unit has two product lines - commercial tubes and precision tubes. Production capacity of both would be expanded. "By the end of the investment plan the unit would be manufacturing 340,000tpa of commercial tubes and 60,000tpa of precision tubes," he said.

Commercial tubes are used for water, oil, gas, steam and sewage. Its can also be used in tube wells, scaffolding systems, roller conveyor idlers, construction of sheds and other structural applications. Precision tubes are used in power, automobiles, general engineering and special applications.

The tubes division registered growth of 11 per cent in sales in the financial year 2003-04 over the preceding fiscal. Tata Pipes sales rose from 185,000 tons in 2002-03 to 208,000t in 2003-04. Exports to west Asia and Germany accounted for 3,500t.