Jindal Stainless speeds up expansion plan

With the disinvestment of Salem Steel being virtually stalled, Jindal Stainless, the lone bidder for the plant, has put its expansion plans on the fast track.

Jindal sources said the company would go ahead with the expansion of its own cold rolling facility by around 50,000 tonne. This would be completed in another 8-10 months and the investment would be in the region of Rs 150-160 crore.

Salem Steel had a cold rolling capacity of 70,000 tonne and a hot rolling capacity of 1.86 lakh tonne.

Sources said the bid for Salem Steel was set to expire in the third week of August and there was no official communication from the new government on the issue. The bid had been extended over the past two years.

However, Jindal Stainless was pursuing alternative expansion plans. The company initiated plans of forging strategic tie-ups with foreign companies for hot-rolled (HR) products.

The company was in discussion with standalone HR units in Asia.

Sources said the tie-up could be in the form of joint ventures or long-term contracts. The focus for the company would be the domestic market.

"With the multiplexes and privatisation of airports, the usage of stainless steel would increase dramatically," said sources.