JVSL plans to acquire blast furnace from Danieli

JVSL plans to acquire blast furnace from Danieli

Indian steel producer Jindal Vijayanagar Steel Ltd (JVSL) is reportedly planning to acquire a blast furnace from Netherlands-based Danieli for Rupees 3.5 billion ($80.1 million). The blast furnace has an annual capacity of 1.3 million tons. Takeover of the blast furnace is a part of an expansion plan, which will increase the annual production capacity of the plant from 2.5 million tons to 3.8 million tons. The blast furnace will be installed at JVSL plant in the Bellary Hospet region of Karnataka. The project is scheduled to be commissioned by March 2006. The cost of overall expansion plan is Rupees 12.75 billion ($292 million). Meanwhile, JVSL has purchased a second steel meltshop from Llanwern works of Danieli Corus. Apart from the capacity expansion plan, JVSL is looking at acquiring coal mines in Australia.