India’s Shyam Metalics Limited (SML) has lined up additional capital expenditure to the tune of $286 million to accelerate its expansion and modernization program already underway, a company statement said on Wednesday, April 29.
The company said that this capex would be in addition to the $1.70 billion already committed, of which $920 million has been spent.
The remaining balance is under phased execution over the next three to four years, reinforcing a long-term growth roadmap focused on capacity-led topline expansion alongside profitability enhancement, the company said.
“Our objective is not simply to add capacity, but to build stronger positions in sophisticated, higher-margin product categories that can drive sustainable returns over the long term. The investments in specialty steel and advanced stainless downstream products will help us move further up the value chain and support import substitution,” the company said in its statement.
Elaborating on the expansion projects, SML said that an estimated $98 million would be riding on constructing an 800,000 mt per year special bar quality (SBQ) and specialty wire rod and bar mill, which will enable the firm's entry into premium steel categories with stronger realizations and higher-margin applications across automotive, engineering, infrastructure and industrial segments.
Another $190 million will be spent on expanding its stainless steel capacity by key downstream additions including an expanded stainless steel melt shop, capacity enhancement in the hot strip mill, a major cold rolling expansion, among others.
