JSW Steel plans to commission the first phase of its new 2.3 million tonnes plant, which will begin producing high-quality automotive steel in December this year, according to a senior executive.
The new plant, located in Bellari in the Karnataka area, has already received a $ 1 billion investment. A technical cooperation program with JFE Steel of Japan is currently being developed. JFE Steel provides proven technology for automotive steel production. Seshagiri Managing Director Rao explained that “out of 2.3 tonnes (planned capacity), we will start production of 1 million tonnes in December 2013 at the first stage. The second phase will be completed in the second half of next year.”
The company announced that it will create a new plant complex for the production of cold rolled products, aimed at increasing its share in the niche segment of the automotive steel market, which is used in the manufacture of body parts for cars and SUVs. The new facilities will help JSW meet the automotive industry's demand for high quality products such as duplex steel and steel strip. Currently, most of the needs of such products are met through imports, as domestic production facilities cannot cope.
According to industry estimates, the complex under construction will produce 2.3 million tonnes of automotive steel per year, cold rolled steel - 1.9 million tonnes per year (two lines of 0.95 million tonnes per year each).
