JSW Steel, India’s mega steel company and part of diversified JSW Group, announced its big upgradation and augmentation projects which are expected to result in improving efficiency of its manufacturing operations and substantial cost savings in the long term.
The company announced its plan to raise the annual steel manufacturing capacity at its Vijayanagar plant in Karnataka to 13 million tpa by March 2020. Currently at 12 million tpa, JSW Vijayanagar Works is the largest state-of-the-art single location steel manufacturing unit in the country.
An investment of Rs Rs 7,500 crore will be made towards expansion and revamping projects. The company is already in the process of revamping and raising the capacity of its Blast Furnace-3 at JSW Vijayanagar Works. This will improve hot metal availability.
Apart from this, it has plans to modify and enhance the capacity of its steel melting shop, the flat and long products mills, along with allied facilities to improve hot metal supply.
With completion of these above projects, the crude steel capacity of JSW Vijayanagar Works unit will increase to 13million tpa.
The steel major will also set up a 1.5 million tpa coke oven plant at Vijayanagar to reduce the shortfall in coke availability. The coke oven unit will provide cost savings for the company over the long term. The unit is expected to be commissioned by March 2020.
As per Projects Today, a total of 13 projects of JSW Steel entailing an investment of over Rs 39,000 crore are under various stages of execution.
Meanwhile, the steel manufacturing company has also started operations at two iron ore mining units at Tunga and Nandi mines in Karnataka for which it has already received statutory clearances. The cumulative capacity of the above mines is 0.71 million tpa.
The company had acquired five mines through an auction held in 2017. The annual production capacity of these mines is around 4.66 million tpa. Of the five mines, JSW Steel awaits statutory clearances and approvals for three mines which are expected by FY19.
Once fully operational, these mines will provide around 20 percent of the iron ore requirement of JSW Vijayanagar Works steel manufacturing unit.
As part of its growth strategy, the steel major is also focusing to improve its product mix by increasing the share of value added and special steel products (VASP). The company is expanding the capacity of CRM-1 complex at Vijayanagar to one million tpa from 0.8 million tpa. In addition, it is also setting up a 0.3 million tpa colour coated line.