Dolvi unit’s expansion plan is on track
JSW Steel’s Dolvi unit in Maharashtra is currently undergoing expansion to double its capacity from 5 MnT to 10 MnT and as per the latest updates, the unit’s expansion work is on track and is likely to get completed by the end of 2019 at an estimated cost of INR 15,000 crore.
After the completion of expansion, Dolvi would have only 1.5 MnT of long products capacity, while the rest would be flat products.
JSW Steel has acquired Dolvi unit from debt-laden Ispat Steel IN 2010. Within one year of acquisition, the company invested INR 2,140 crore to install a coke oven pellet plants, and also a cold rolling mill to secure backward integration and reduce production cost. It commissioned a 55-MW plant, which would use waste gas generated by the blast furnace. In 2014, the company had announced its plan to enhance the capacity of Dolvi works from 3.3 MnT to 5 MnT per annum for an investment of INR 3,300 crore which was completed recently.
Vijaynagar unit expansion plans
In Jun’18, the company has also announced its plans to invest INR 7,500 crore until March 2020 to increase production capacity at its Vijaynagar facility in Karnataka by 1 MnT to 13 MnT per annum.
The steel-maker is also expanding the capacity of CRM-1 complex at Vijayanagar works from 0.8 MTPA to 1 MTPA as well as setting up a 0.3 MTPA colour coated line as part of its growth strategy. The company also plans to set-up a 1.5 MnT per annum coke oven plant in Karnataka to bridge the current and expected gaps in coke availability, which is likely to be commissioned by March 2020.
The company had environmental clearances to increase the capacity at the Vijaynagar plant from 12 MnT to 16 MnT, while at Dolvi, from 5 MnT to 10 MnT.
By March 2020, the company is aiming at a total installed capacity of around 24 MTPA from the existing 18 MTPA.
U.S. plant’s expansion works
In case of overseas operations, the company has planned to invest USD 150 million to modernise the existing 1 MnT of pipe and plate mill in the first phase which will be completed by March 2019. In the second phase, it will set up a new melt and steel manufacturing plant with an investment of USD 350 million to triple the production capacity to 3 MnT per annum by 2020.
The company had recently taken over an integrated flat steel-making facility in the US - Acero Junction Holdings - with a potential capacity of 3 MTPA for an enterprise value of USD 182 million. By 2030, the company plans to increase its capacity to 40 MnT in India and 10 MnT overseas.