JSW Steel plans to spend Rs 26,800 crore to take its capacity to 23 million tonne per annum (MTPA) by March 2020, its Chairman Sajjan Jindal said today.
“We have already outlined a capex programme of Rs 26,800 crore to expand overall steelmaking capacity to 23 MTPA by Mar 2020 and increase our downstream flat steel capacity to 7 MTPA by September 2019, along with a few other strategic projects,” Jindal said.
These key projects will be set up at a very competitive capital cost and will improve the company’s return ratios further, Jindal said, addressing the shareholders at the company’s annual general meeting today.
“We are also working to operationalise all the five iron ore mines which we won in Karnataka in October 2016. We aim, with these mines, to meet approximately 20 per cent of the total iron ore requirement at Vijayanagar,” he said.
The company is also striving to commence mining at the Moitra coking coal mine which it bagged in auction in Jharkhand at the earliest, he said, adding the company will continue to bid for more mines, both iron ore and coal.
Jindal said the steel giant is also working towards operationalising its US coal mines in the current year.
“Moreover, with better prospects for infrastructure spending in the US, and hence demand for key end markets for plates and pipes, we expect a turnaround at our US Plate & Pipe Mill facility in the current year,” he said.
The JSW chief said the company is investing in people and sustainable practices to remain among the world’s best run steel companies.
Besides, to make the firm “future proof, we have recently embarked on a digitalisation journey, to do a full digital makeover plan and improve efficiency in the manufacturing processes and reduce costs,” he said.
The company is looking looking to deliver a 4 per cent growth in crude steel production volume to 16.5 million tonnes and 5 per cent growth in sales volume to 15.5 million tonnes in FY 2017-18.
“We will continue to focus on increasing the share of the value-added products basket in our overall top line. We will continue to scout for organic and inorganic growth opportunities to expand its footprint,” Jindal said.
The company has about 18 MT installed capacity at present. NAM MR
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