SIL to set up Steel Complex at Raichur

Chennai, Sep 25 (UNI) Surana Industries Limited (SIL), a Chennai based leading manufacturers of steels, will set up an integrated steel complex at Raichur, Karnataka for manufacturing special steels meant for automotive industries at a total investment of Rs 473 crore.

The Raichur project would commence operations from December 2007 and the Karnataka Government had provided 164 acres of land for the project, out of 300 acres promised, a company release said here today.

The Raichur factory would have capacity to produce 128,000 tonnes of Sponge Iron, 136,700 tonnes of Steel melting shop and 132,500 tonnes of Rolling Mill annually. The plant would have 30 MW captive power plants.

SIL Managing Director Dineshchand Surana said " we are putting up this project since India is emerging as a global hub for manufacturing and outsourcing of auto and automobile components coupled with capacity expansion by all the major auto players.

With huge capacity expansions the demand for special steel in various industries such as automobiles, industrial machineries, defence and railways, there is going to be good demand in domestic and global market," he said.

SIL had signed EPC contracts with leading firms for setting up this project and the company would employ more than 1200 people.

The company was expecting Rs 500 crore turnover from Raichur project in its first full year, and the total turnover would be Rs 1200 crore on March 31, 2008, he added.

UNI GV AJ 1854