New Delhi, Aug 8 (UNI) The long-term expansion plans of the country's third largest steel producer JSW Steel is likely to be affected if its bottomline continues to be hit.
''Our vision to produce 32 million tonnes of steel by 2020 may be affected if pressure continues to be on our margins, thereby resulting in a decline in surplus production and growth,'' Vice Chairman and Managing Director, JSW Steel, Sajjan Jindal said on the sidelines of an event here today.
The company plans to invest Rs 1,00,000 crore to reach 32 million tonnes of steel production capacity by 2020.
The steel major has proposed two greenfield projects in West Bengal and Jharkhand besides expansion of its present capacity from five million tonnes to eight million tonnes within a couple of months.
The company has been battling shrinking margins due to increase in input costs and subsequent freeze on steel prices since May 7.
''However, I do not foresee any major effect of shrinking margins and holding of the price line on the company's short-term expansion plan to reach 11 million tonnes of production by next year,'' Mr Jindal added.
''Our plan to reach 11 million tonnes of steel production by next year is on track and the financial dealings for the same have been closed,'' he added.
UNI AK SG BD1755