Indian Visakhapatnam plans to increase capacity

Indian Visakhapatnam plans to increase capacity

India's long producer, Visakhapatnam Steel Plant (VSP), is planning to increase its capacity from the current 3 million ton level to 10 million tons by the year 2010 and has submitted a draft proposal to the steel ministry in this respect. With such an increase in capacity, the company is aiming to include flat production in its facilities. The company mainly produces wire rods, reinforcing bars, square bars, heavy angles and heavy channels currently. The company is state owned and is the first shore based integrated mill in India. The capacity expansion project is planned to be effected in three steps and is intended to cost Rupees 17'500 crore (approx. $3.7billion) in total. Initially the furnaces will be converted to natural gas fired systems; thereafter two more blast furnaces will be added. The company raised its turnover by 24% year on year to Rupees 4'400 crore during the financial year ending on March 31, 2003, with the help of increased domestic sales as well as exports.