Vishakapatnam Steel to increase its capacity

Vishakapatnam Steel to increase its capacity

Recent news in the market reports that Indian steel producer Vishakapatam Steel Plant (VSP) is planning to expand its capacity to 10 million tons by 2020. Accordingly, the company is reported to be currently working on a project. As per the statement released by the company, the capacity will be increased its current level of 3 million tons to 7 million tons by 2006-2007 fiscal year in the first phase and in the second phase, it will be increased to 10 million tons. VSP posted a net profit of Rupees 5.2 billion ($115 million) in the previous fiscal. The company's target of net profit for the current fiscal is stated to be Rupees 12 billion ($265 million). Moreover, the company is aiming to compensate the loss of Rupees 45 billion ($995 million) by 2006-2007 fiscal. VSP is also planning to establish its fourth coke oven battery with an investment of Rupees 3 billion ($66.3 million). For this project, the company is stated to have received the approval of the government. The coke oven battery, which is based on Russian technology, will start operations in 30 months, according to the plans of the company.