Kolkata, Jan 29 (UNI) Usha Martin Limited's Managing Director Rajeev Jhawar today said the price of steel is expected to escalate soon owing to hike in price of raw materials and other logistic demands of the domestic and export market.
Announcing the company's target of production in next two years, Mr Jhawar after emerging from a Board meeting, said it would double the production to some 7 lakh tonne from present 3.5 lakh tonne of steel goods.
He said steel price would go high because of steep rise of raw materials.
He said the company was using all its resources to enahnce production by 2010 by having self sufficiency in power generation, mineral and mining enrichment of coal and coke of high quality, capacity expansion of value added products like wire ropes, strand, wires, bright bars etc.
Mr Jhawar said the company's Ranchi division will have its own power by next sixteen months by having a 20 MW power project now being constructed.
He said the company enhanced the scope of capital project from Rs 1250 crore to Rs 2100 crore and an additional Rs 850 crore to cover the expenses of mining of iron ore and other minerals.
The company would also sell iron ore in domestic and foreign market to offset its present load of high cost of rising prices of input materials for production of steel goods.
Mr Jhawar also raised fund from preferential allotment of warrants to promoters at the rate of Rs 87 per share totaling Rs 335 crore.
He also said the capital expenditure plans for speciality steel capacity expansion to one million tonne and wire ropes product capacity enhancements were progressing as per schedule of the company.
Usha Martin was now manufacturing facilities in Ranchi, Jamshedpur, Hoshiarpur, the UK, Thailand, UAE and USA.
Mr Jhawar also ruled out any acquisition of new company and said it had already set its eyes for internal expansion for making 7 lakh tonnes of steel prodcucts by 2010.
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