Tata Steel raises its capacity by 1 million tons

Tata Steel raises its capacity by 1 million tons

Indian major steel producer Tata Steel is planning to increase its annual capacity by 1 million tons. As a part of this project, Tata Steel and Europen steel maker Arcelor are going to sign an agreement in the middle of June. Tata Steel will improve its automotive applications by acquiring Arcelor technology in coated galvanized steel for automobile applications. The company will allocate a capital expenditure of Rupees 17 billion (approx. $361 million) for this project. Furthermore, Tata Steel will improve its hot rolled facilities in order to meet the automotive manufacturers' specifications. This upgrade will cost Rupees 1 billion (approx. $21 million). Currently, Tata Steel's cold rolled mill meets with the Maruti Suzuki's ancillary specifications which is the India's largest automotive manufacturer. And also, the company supplies some car parts after cold rolling HR steel imported from Japanese steel maker Nippon Steel. Tata Steel stated that the company will supply cold rolled products using its own hot rolled material to Indian automotive manufacturers within a year.