Indian producer SPS to consolidate groups

Indian producer SPS to consolidate groups

Indian steelmaker SPS will consolidate the production facilities of its two Calcutta-based groups, SPS Steel Rolling Mills and SPS Sponge Iron. The merger will be completed by 2007 and will increase the company's total capacity by four times. Upon completion of the consolidation the name of SPS Sponge Iron will be changed to SPS Steel and Power Ltd. (SSPL). At a later date, the SPS Steel Rolling Mills will be merged with SSPL. At the same time, SPS plans to gradually close down the operations of SPS Metalcast and SPS Ferro Alloys, both of which have been losing money for the company. The company's Managing Director stated that the land, equipment, and personnel of SPS Metalcast will be transferred to SSPL. Among the group's other expansion projects, SPS also plans to invest Rupees 3.8 billion ($83.2 million) in a plant in Jharsguda which will include a sponge iron unit, billet caster, power station, blast furnace, and rolling mills.