The Hindu Business Line : SAIL plans to make stainless steel at Salem plant

Steel Authority of India Ltd (SAIL) announced on Wednesday plans to enter value-added steel manufacturing and manufacture of stainless steel at its Salem Steel Plant (SSP). The company has so far sourced stainless steel slabs for the Salem plant through imports and from other domestic manufacturers like the Jindals, company officials said.

On Wednesday SAIL approved Rs 1,553 crore investment for setting up steel making facilities, including a continuous slab caster, and expansion of the cold rolling capacity at its Salem plant in Tamil Nadu.

The new facility, with capacity to produce 1.8 lakh tonnes stainless steel slabs per annum, will help SSP become cost competitive. Dependence on external sources was one of the main reasons why the plant turned sick, officials said. The steel making facility will include a 50-tonne electric arc furnace, 60-tonne AOD converter with ladle furnace and single-strand slab caster.

SSP's cold rolling capacity will be increased from 65,000 tonnes to 1.46 lakh tonnes per annum with the addition of an annealing and pickling line, according to a company release.

SSP's expansion plan also includes installation of an additional grinding machine in its hot rolling mill, which produces 1.8 lakh tonnes of coils/sheets per annum currently.

CEMENT VENTURE

In the meantime, SAIL is forming a joint venture with Jaiprakash Associates Ltd (JAL) for production of 2 million tonnes of cement per annum. The joint venture, where SAIL will hold 26 per cent equity, is part of the company's efforts to explore eco-friendly modes of slag disposal at its Bhilai Steel Plant, according to a company release.

Bhilai currently generates around 1.5 million tonnes of slag per annum, which is disposed through medium-term contracts to cement manufacturers. Under Bhilai's ongoing expansion plan, the annual generation of blast furnace slag is likely to increase to around 2.1 million tonnes, the release added.

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