Arjas Steel to boost steel capacity to 0.55 million tonne

16 Dec 2022 CW Team

In order to boost its yearly production capacity to 5.5 lakh tonnes, Arjas Steel, previously Gerdau Steel, planned a Rs 6.1 billion capital expenditure. This represents an increase of more than 37.5% above its current capacity across its Andhra and Punjab facilities.

The business runs two facilities: Tadipatri in Punjab's Mandi Gobindgarh and the Andhra Pradesh area of Anantapur. While the Punjab facility, which it purchased in November 2020 for roughly Rs 1 billion produces 1 lakh tonne annually, the Andhra plant now has a capacity of 3 lakh tonne.

According to a statement from the managing director, Sridhar Krishnamoorthy, around Rs 3.5 billion of the total investment will go toward expanding the Tadipatri facility, and the remaining Rs 2.6 billion will be allocated to the Punjab unit.

According to the company, the capacity expansions will be completed in 2025.

Arjas provides steel to the energy, automotive, railroad, and defence industries, as well as exports.

Tadipatri is investing in a new Kocks sizing block from Germany to improve quality and throughput, as well as a Garret coiler line to produce speciality steel in coil form. To increase output, the unit will also add new stoves and more steel refining capacity.

Tadipatri's capacity will be increased by 25-30% as a result of the expansion.

According to him, the Punjab unit will have a new emission control system, improved steel-making and rolling, and other critical quality assurance systems installed, increasing output to 60-70 percent of current levels.

Arjas acquired Modern Steel's auto components business in Punjab in November 2020 for approximately Rs 1 billion.

Both companies produce specialized steel for the automotive industry. Arjas Steel will be able to supply steel products to clients such as Maruti and Hero Morocorp following the acquisition.

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