SAIL gives nod for expansion of Salem Steel Plant

New Delhi, June 28: The Board of Directors of Steel Authority of India Ltd (SAIL) today approved a proposal for expansion of Salem Steel Plant (SSP) in Tamil Nadu at a cost of Rs 1,553 crore.

The expansion plan envisages installation of steel making facilities, including a continuous slab caster, and expansion of the plant's cold rolling capacity.

The capacity addition, proposed to be completed within 36 months, will enable SSP to take advantage of the growing global stainless steel market.

The new steel making facility will have a capacity to produce 1,80,000 tonnes of stainless steel slabs per annum, while the capacity of SSP's cold rolling mill will go up from 65,000 tonnes to 1,46,000 per annum.

This is one of the various schemes of the Corporate Plan 2012 of the company, envisaging total investment of Rs 35,000 crore, an official statement said.

The expansion of SSP's cold rolling mill is expected to help improve the plant's market share in the value-added growth segment of the stainless steel market, the statement added.

SAIL had recently issued a letter of intent to Jaiprakash Associates Ltd to form a joint venture for producing 2 million tonnes of cement per annum.

UNI