Essar expands production capacities

The Indian flat rolled producer Essar Steel has announced the completion of its project worth Rupees 19.75 billion ($442 million) for the expansion of production capacity to 4.6 million metric tons a year at its Hazira Complex in Gujarat. This expansion makes Essar Steel India's largest flat rolled producer in the private sector. The company now accounts for close to 23 percent of the country's flat steel capacity. Furthermore, Essar Steel has installed two more modules for HBI/DRI production, increasing total capacity to 5.5 million metric tons per annum. This additional expansion makes Essar Steel the largest single-location HBI producer in the world. Moreover, Essar Steel has increased its share of value added products to 75 percent from the previous 45 percent. We also have heard that Essar Steel is looking into possibilities of acquiring some rolling facilities in East European countries. Responding to a question posted by SteelOrbis on the issue, Essar Steel's representative stated, “As a Group, we keep looking at growth opportunities. However, we have not identified any location either for setting up a plant or acquisition”.