Ruias promoted Essar Steel today said that it will set up its fifth service centre at Bhuj to cater to the auto and general engineering sectors entailing an investment of Rs 50 crore.
"The Bhuj service centre will be the first centre of its kind to be set up by any steel company in a town that consumes 1.5 million tonnes of steel per annum," Essar Steel said in a statement.
The centre will have an annual capacity of two lakh tonnes per annum and is slated for commissioning by March 2010.
An Essar Steel spokesperson told PTI that around Rs 50 crore would be required to set up the service centre and the land for the project has already been acquired.
Essar Steel's existing service centres, which offer customised products to the customers, are located at Chennai, Bahadurgarh, Pune and Hazira.
With the commissioning of the new facility, Essar Steel will have 2.7 mtpa total aggregated capacity. The company is the number one in the country in this segment.
"Setting up the service centre is in line with the company's stated objective of being closer to the customers," the release said.
Essar Steel has 4.6 mtpa steel making plant at Hazira.