Shyam Metalics gains 3% on commissioning blast furnace & sinter plant in WB

Shyam Metalics and Energy shares gained 3.3 per cent on Tuesday and registered an intraday high of Rs 866.55 per share on BSE. The stock was in demand after the company commissioned a new blast furnace and launched a sinter plant in West Bengal.

 

Around 1:21 PM, Shyam Metalics shares were up 2.49 per cent at Rs 859.5 per share on BSE. In comparison, the BSE Sensex was down 0.36 per cent at 78,502.30. The market capitalisation of the company stood at Rs 23,991.38 crore. The 52-week high of the stock was at Rs 956.05 per share on BSE and 52-week low of the stock was at Rs 433.15 per share.

 

 

During market hours, today, Shyam Metalics officially commissioned a new blast furnace and launched a sinter plant at its Jamuria facility.

 

The company invested Rs 600 crore for the project and it aims to expand production capabilities to meet the growing demand for high-quality steel products across various industries.

 

As per the filing, the newly commissioned blast furnace has a capacity of 0.77 million tonnes per annum (MTPA). With a volume of 550 cubic meters, the blast furnace is equipped with three top-fired stoves, modern coal dust injection technology, and a dry gas cleaning plant to optimize the steelmaking process. This enhancement is anticipated to boost steel production by 0.77 MTPA and improve margins by approximately Rs. 700/MTPA. 

 

To improve operational efficiency, the plant has an 18 MW top gas pressure recovery turbine (TRT), which contributes an additional 10 per cent to energy recovery. 

 

A specialised evaporative cooling system reduces water and power usage by about 20 per cent when compared to conventional systems. Furthermore, the facility is designed for zeroprocess water discharge, to optimize process efficiency as part of the company's growth strategy.

 

In addition to the blast furnace, the company also launched a sinter plant with a capacity of 1.11 MTPA, designed to process iron ore fines into a feedstock suitable for the blast furnace. This addition is expected to increase operating efficiency and reduce production costs.

 

“The new blast furnace and sinter facility will improve India's steel production capability. This development demonstrates our commitment to encouraging industrial growth and creating employment opportunities in the region," said Brij Bhushan Agarwal, vice chairman & managing director, Shyam Metalics and Energy.

 

In the past one year, Shyam Metalics shares have gained 89 per cent against Sensex's rise of 21 per cent.