The Indian steel producer Steel Authority of Indian (SAIL) has announced that it plans to invest INR 30 billion ($675 million) to set up a joint venture (JV) with Japanese steelmaker Kobe Steel for the restart of SAIL's Jagdishpur mill which was formerly owned by Malvika Steel Company.
SAIL chairman C. S. Verma stated that the detailed plans for the JV will be finalized within the next two months. The project includes the setting up of sponge iron making facility and an electric arc furnace, with the production of downstream products such as speciality and auto-grade steel.
Mr Verma also added that SAIL aims to raise its annual iron ore production capacity to 5 million mt within the next three years. By 2012-13, the annual crude steel production capacity of SAIL is expected to reach 21.4 million mt, while its annual iron ore demand is expected to increase to 42 million mt, from the current 24 million mt.