JSW inks supply deal with BOC

JSW Steel has entered into a long-term contract with BOC India to source gas for its expansion programme at the unit in Bellary, Karnataka.

The steel maker is nearly doubling its capacity to 7 million tonne a year. BOC will supply JSW over 3,000 tonne per day of oxygen, nitrogen and argon from a custom-built air separation unit (ASU).

To meet this requirement BOC will set up one of the largest build-and-operate on-site air separation plant in the country.

The ASU will meet JSW's gas requirement and additionally will produce liquid products to meet the growing demand from customers in southern India.

This ASU, which will be one of BOC's largest in Asia, is expected to be commissioned in 2008, in time to meet the requirement of gas arising from the ongoing expansion programme at JSW Steel.

"BOC was able to provide the best technical solution for our gases requirement, this along with their reputation for quality was key in our selection of BOC to support our expansion programme," said B. N Singh, joint MD & CEO, JSW Steel.

"We are delighted to be selected by JSW Steel. With the gas requirement of nearly 4500 MTPD from the expansion they will become BOCI's largest customer," said E R Raj Narayanan, MD, BOC India.

This contract follows an earlier agreement signed last year with JSW Steel to supply its Bellary site with some 1,400 tonnes per day of oxygen and nitrogen.

An ASU is currently under construction by a BOC joint venture, with commercial production expected to begin later this year. In addition to its major air separation plants in Jamshedpur, Tarapur and Taloja, BOCI has recently commissioned its latest merchant ASU in Hyderabad.

In FY06, BOC registered its highest ever turnover of Rs. 560.93 crore, recording a growth of 32 per cent over the previous year.