SAIL invites Indian steelmakers to consolidate
India's largest state-owned steelmaker Steel Authority of
India Limited (
SAIL) invites all state-owned steel plants to consolidate in order to maintain competition against global steelmakers.
Global steelmakers such as Arcelor, Mittal Steel and POSCO are setting up plants in
India. According to Mr. VS Jain, chairman of
SAIL, domestic producers may not keep competitive against them unless they join forces through mergers and acquisitions.
In this regard,
SAIL is planning to take over Vizag Steel (Rashtriya Ispat Nigam Ltd), Nilachal Ispat Nigam Ltd (NINL) and Manganese Ore and Iron Ltd (MOIL).
SAIL's current capacity is 8.6 million tons. The company is planning to increase its capacity to 20 million tons by 2011.