BSP aims to increase sales to high-end steel market

BSP aims to increase sales to high-end steel market

Steel Authority of India Ltd (SAIL) is planning to increase the capacity of its chief Bhilai Steel Plant (BSP) from the current 4.9 million tons to 7 million tons by 2011. While still maintaining its market leadership in rails and plates, Bhilai's product mix will focus on construction, cold reducing, and oil and gas transportation, the three main steel-consuming sectors which SAIL has identified to have the maximum growth prospects. After completion of the modernization project, BSP's flat products component will increase from roughly 25% to 41%, production of semi-finished products will lessen to around 8%, while the mill's long products production will remain roughly the same 51% of total saleable steel. In order to cater to the needs of the growing oil and gas pipeline sector, the company is planning to install a 200'000 ton per annum-capacity large diameter pipe plant. According to market sources, these new units would allow the plant to sell to the higher end of the steel market and increase its value-added production, which now comprises 30% of its total production.