Date:04/03/2005 URL: http://www.thehindubusinessline.com/2005/03/04/stories/2005030402210200.htm

Back Tata Metaliks mulls fresh blast furnace capacities

Pratim Ranjan Bose

Kharagpur , March 3

TATA Metaliks Ltd (TML) is actively considering acquisition of fresh blast furnace capacities. The company is also planning to add steel-making facilities at its existing pig iron facility in Kharagpur in West Bengal. The diversification plan is expected to be ready in the next five-six months.

Talking to newspersons in connection with the inauguration of TML's second blast furnace at Kharagpur, the company Chairman, Dr T. Mukherjee, said that the company was planning to add mini steel-making facility to produce long products at Kharagpur. The facility would use indigenous technology for steel making through the electric furnace route, using both sponge iron and liquid steel as inputs.

Stating that the plant would initially produce only billets, Dr Mukherjee said that the size of the project could be anything between one lakh and 10 lakh tonnes. "We are yet to decide on the size of the project. However, we are not going to compete with Tata Steel insofar as steel is concerned and foundry-grade pig iron will continue to be the mainstay of Tata Metalik's business."

TML has decided to approach the West Bengal Government shortly for additional land adjacent to its existing 200-acre campus at Kharagpur. It may also expand pig iron capacity from the existing 3.20-lakh tonnes.

"Considering that pig iron enjoys good demand in the domestic as well as international market, we may have to expand the pig iron capacity in the future." The company has also approached Orissa and Jharkhand for lease of iron ore blocks.

On acquiring blast furnace capacities, Mr Harsh K. Jha, Managing Director, said the company has already short-listed a few target industries. "We will not divulge further details in this regard at this juncture.''

TML has already completed commissioning of its second blast furnace to expand pig iron capacity to 3.20-lakh tonnes from the earlier 1.80-lakh tonnes. The expansion has cost Rs 48 crore and is expected to help generate a turnover of over Rs 500 crore in 2005-06.

Inaugurating the blast furnace, the Chief Minister, Mr Buddhadeb Bhattacharjee, assured the company of all possible support. He also appreciated the role of the company in converting Kharagpur into an industrial hub. The State Government is planning to create an industrial belt from Kharagpur to Jhargram in this backward district of West Medinipur.