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JSW Steel commences production of hot-rolled plates from Dolvi Works


Steelmaker JSW Steel has started producing hot-rolled plates from its Dolvi works plant in Maharashtra, the company announced on Thursday.

“JSW Steel has commenced production of Hot-rolled plates from the new 5 million tonne per annum hot strip mill facility at its Dolvi Works,” the company said in a BSE Filing.

This comes at a time when the steel prices have touched record levels of Rs57,000 to Rs 60,000 a tonne on the back of surging global prices and a better than expected domestic demand.

Morgan Stanley in its recent sector report said that the current cycle has an element of similarity to both the prior upcycles (after the global financial crisis 2009 and supply-side reforms during 2016-18).

“We see a sharp rebound in steel demand globally in 2021, supported by a V-Shaped economic recovery,” the report said.

The company is also planning to double Dolvi Works capacity to 10 million tonne per annum by the end of Q1 of FY22.

In order to take Dolvi’s capacity from 5 mtpa to 10 mtpa, some upstream and downstream facilities were planned with 4.5 mtpa of Blast furnace with a 5 mtpa of Steel Melt Shop and a 5 mtpa of hot strip mill and an 8 mtpa of pellet plant.

Now the 5 mtpa downstream facility of the hot-strip mill is up and running and is producing hot-rolled plates now.

The company recently completed the acquisition of Bhushan Power and Steel Ltd by transferring Rs 19,350 crore to a Punjab National Bank (PNB) and bringing the three-and-a-half-year-old resolution process to an end, paving way for the Sajjan Jindal-led company to enter the mineral-rich eastern India, which has so far been the dominated by state-owned SAIL and Tata Steel.

The current steelmaking capacity of JSW Steel is around 18 MTPA and after expansion in Vijayanagar, Dolvi and Salem along with the BPSL acquisition, the capacity is likely to go up to 27 MTPA, making the company the largest steel producer overtaking Tata Steel which has 20.6 MTPA capacity.


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