Steel long products are used in infrastructure and construction segment, an area where the government is laying immense thrust to up investments.
“The plan is to build steel long product centers where iron ore is less and scrap is in abundance. Also, the unit should be closer to the market as it will keep logistics cost lower,” said Narendran. “We already do a million tonnes rebar through this model and to ensure quality, we have our people at those plants,” he added.
Apart from total 10 million tonnes (of which 3 million is long product capacity) at Jamshedpur, Tata Steel’s Angul (5.6 million tonnes) and Kalinganagar (8 million tonnes) facilities in Odisha produce only flat steel, meant for auto sector.
“The East (part of the country) allows us to build integrated steel plants at the existing plants and we can build up to 35-40 million tonnes as land and opportunities are available,” said Narendran.
Naveen Jindal-led Jindal Steel & Power
and state-owned SAIL
are the two other large steel long product producers in the country but with integrated steel plants.
India’s scrap steel market is scattered with ship-breaking, construction, auto and power sector, among others being the contributors to the same. “We are setting up the first plant in the North next year. If that one becomes a success, we can scale up this project,” said Narendran.