To bolster its long-term growth plan in India, Tata Steel has announced a number of brownfield expansion and backward integration initiatives.
The business and Lloyd Metals & Energy (LMEL) have inked a memorandum of understanding for the combined construction of a greenfield, two-phase, 6 million-ton steel factory in Gadchiroli, Maharashtra.
Additionally, both businesses will work on pellet production, slurry pipeline logistics, and iron ore mining. According to Tata Steel, they would run mining concessions and related infrastructure with the goal of boosting iron ore output and playing a significant role in establishing the area as India’s new iron ore center.
Following its board meeting on Wednesday, the business stated that all suggested initiatives are subject to more thorough examination, due diligence, and receipt of necessary internal and regulatory permissions.
Additionally, Tata Steel has finalized arrangements to pay Thriveni Earthmovers ₹636 crore for a 50.01 percent share in Thriveni Pellets. LMEL will own the remaining portion of Thriveni Pellets. In three to four months, the acquisition is anticipated to be finalized.
Thriveni Pellets is the sole owner of Brahmani River Pellet, which runs a 212-kilometer slurry pipeline and a 4 mtpa pellet mill in Jajpur, Odisha.
In order to establish a demonstration facility utilizing the HIsarna technology in Jamshedpur, Tata Steel will also start engineering work and apply for regulatory permission.
Tata Steel is the owner of the worldwide intellectual property rights to the low-carbon HIsrana process technology, which employs steel slag, low-quality iron ore, and no coke.
According to the report, Tata Steel and a major international steel business have been conducting joint testing at the IJmuiden Pilot Plant for the past few years.
Additionally, the 4.8 mtpa capacity increase at Neelachal Ispat Nigam has received in-principle clearance from the Tata Steel Board. According to the statement, the first phase of development would allow Tata Steel to capitalize on the rise of the Indian construction industry through new products and solutions, as well as to further extend the lengthy product range, particularly in the highly profitable retail market.
Additionally, the business will handle the engineering and design of a 2.5 million-ton thin-slab caster and rolling facility at Tata Steel Meramandali. The project will increase the finished steel capacity by 2.5 mtpa, especially for thinner gauge goods.
The business intends to establish a 0.7 mtpa Hot Rolled Pickling and Galvanizing Line at its current Cold Rolling Complex in Tarapur, Maharashtra, as part of its downstream growth.
According to the company, the “first of its type” plant in India would help Tata Steel satisfy the demands of its automotive clients for import replacement and strengthen its position as the industry leader.
