Indian government-owned steel company Rashtriya Ispat Nigam Limited (RINL) will complete its expansion project and achieve full capacity utilization of 7.3 million mt per year by 2019-20, a company official said on Tuesday, August 22.
RINL which operates a three million mt per year steel mill in the coastal town of Vishakhapatnam in the southern Indian state of Andhra Pradesh will ramp up capacity first to 6.3 million mt per year and subsequently add another 1 million mt and the entire capacity expansion project will be completed within the next two years, the official said.
The official stated that RINL, which has been posting losses for the last two fiscal years, will also continue to incur losses in the current fiscal year, but is expected to record a cash profit in the current year.
The company expects to return to profit once it completes expansion of the steel mill as leveraging the full capacity will enable the company to benefit from large-scale production of finished steel, he added
