Essar Steel completes expansion in Gujarat

Essar Steel announced today that it had completed the expansion of steel manufacturing capacity at its Hazira complex in Gujarat to 4.6 million tonnes. The expansion project was completed in 18 months with an investment of Rs1,975 crore.

The Company said that it was the culmination of Essar Steel's strategy to be a low cost, high quality and value added producer for the niche, high end markets in India and abroad.

The expansion makes Essar Steel India's largest producer of flat steel in the private sector, accounting for close to 23 per cent of the country's flat steel capacity.

The company also installed two more modules for HBI/DRI production, increasing total capacity to 5.5 million tonne per annum. This makes the Essar Steel the largest, single location producer of HBI in the world.

It also increases the share of value-added products in Essar Steel's portfolio to 75 per cent from the existing 45 per cent and will contribute significantly to reduction in imports of critical special grades of steel meant for sophisticated applications.

The company also said that it expected a quantum jump in exports of its products and it would consolidate its pre-eminent position as India's largest exporter of flat steel.

Prashant Ruia, Director, Essar Group said: "We are extremely pleased that the capacity expansion will make India an even more potent force in international steel markets. This expansion and modernisation puts Essar Steel in the premium league of high-end steel producers. We are privileged to be at the core of India's economic development at a time when the country is being recognised as one of the fastest growing economies in the world."

The expansion included adding a new electric arc furnace, a third caster, RH degasser and allied equipment.

In order to meet the requirements of the expanded steel capacity, infrastructure facilities have also been enhanced. This includes a captive power plant of 500 MW capacity, increase in capacity of the port to 12 MTPA and allied machinery and equipment workshops.

The company's R&D centre has also been modernised and expanded and houses state-of-the-art equipment and highly qualified and trained scientists and engineers.