India’s RINL to begin production at steel wheel plant in 2019

Thursday, 03 May 2018 17:47:13 (GMT+3)   |   Kolkata
       

Indian state-owned steel producer Rashtriya Ispat Nigam Limited (RINL) will commence production from its new steel wheel manufacturing plant in 2019, and has signed an agreement with government transporter Indian Railways to supply at least 80 percent of its annual production, company sources said on Thursday, May 3.

The plant located in the northern Indian state of Uttar Pradesh, will be "the first geographic and product diversification" of RINL which operates a stand-alone steel mill located in the southern Indian port town of Vishakhapatnam with a predominantly long steel product portfolio, the sources said.

The steel wheel plant which will meet Indian Railways demand for locomotive and new generation high-speed trains will entail a total investment of $240 million and will have an annual production capacity of 100,000 pieces of steel wheels, the sources said.

The new wheel plant is expected to contribute an estimated $84 million per year to the total revenues of RINL and to constitute a key element to the company’s target of posting net profits during the fiscal year 2019-20, after the steel mill registered losses for two consecutive years during 2015-16 and 2016-17, while it is expected to post cash profits for the fiscal year 2017-18, the sources added.


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