SAIL to invest Rs 250 billion to increase its capacity

SAIL to invest Rs 250 billion to increase its capacity

Indian steel producer Steel Authority of India Ltd (SAIL) is reportedly planning to invest Rupees 250 billion ($5.4 billion) over eight years to increase its capacity. The annual crude steel capacity of the plant will be increased from 11.8 million tons to 18.7 million tons, whereas hot metal production will reach 20 million tons by 2012. The capacity expansion is planned to be funded mainly through internal sources. Moreover the company is planning to reduce share of semis in its product mix. The current share of semis, which is 22%, will be reduced to 5% by 2012. Capacity increase will be materialized through modernization of certain mills and establishment of new facilities. Furthermore SAIL plans to develop iron ore mines and to establish mining joint ventures.