VSP to increase value-added steel production

VSP to increase value-added steel production

Indian steelmaker Visakhapatnam Steel Plant (VSP) announced plans to increase value-added steel production. VSP, India's long products leader, decided to diversify by increasing its focus on value-added steel production. The move comes as VSP continues to see its market share being eroded by long products from the secondary steel sector. The secondary steel sector supplies 60% of India's long product requirements. Integrated steel plants supply the remaining 40%. VSP increased the percentage of value-added products to 28% in 2004-05, up from 24% in the previous fiscal year. The company plans to increase the percentage to 30% this year. VSP produced 880'000 tons of value-added products during the 2004-05 fiscal year.