WSJ reported that Steel Authority of India Limited hopes to achieve its production target of around 12 million metric tonne in the financial year ending March 2010 despite an economic slowdown, but may have to realign some of the current expansion plans amid lingering concerns about a fledgling recovery in demand.
Mr SK Roongta chairman of SAIL during an interview told that “We had set a target to increase production to 26.4 million tonne by 2011-12. We are sticking to our plan of reaching 26.4 million tonne, but it may be slightly staggered or phased, depending on market conditions."
Other company officials recently said it still plans to invest INR 780 billion to add new capacity, but that investment may now be completed only by 2013-14.
According to report, SAIL plans to invest more than INR 100 billion in the financial year ending March 2010 to modernize its steel mills in India. Of this, around INR 50 billion will be raised from the market.
While the company is not planning to add any new steel production capacity this year, it will upgrade a 2,500 tonne per day blast furnace at the Bokaro steel plant to take the capacity to 4,500 tonne per day. The upgraded blast furnace will start production by the end of the current fiscal year.
(Sourced from http://www.steelguru.com/news/index/2009/07/22/MTAzMjI5/SAIL_to_realign_expansion_plans_as_per_market.html)
Tuesday, July 21, 2009
SAIL to realign expansion plans as per market
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