In line with its strategy of increasing its portfolio of value-added products, JSW Steel announced its entry into the manufacture of electrical steel.
JSW and JFE of Japan had signed an agreement in 2010 according to which both companies had agreed to collaborate in automotive steel manufacturing at Vijayanagar works. Now they intend to extend the collaboration to electrical steel.
The company is planning to set up an electrical steel manufacturing facility of 6 lakh tonnes per annum capacity at its integrated steel works at Vijaynagar. Initially, the facility will make 4-5 lakh tonnes of cold-rolled non-grain-oriented (CRNO) grade electrical steel. The company will also take a call on the production of cold-rolled grain-oriented (CRGO) grade steel in future. JSW aims to become the largest electrical steel producer in India.
The first phase of the facility will make 2 lakh tonnes annually of CRNO. This is likely to be commissioned in two years after receiving requisite approvals.
Electrical steel is a high grade product which requires technology hitherto unaccessible in India. According to the company, the present demand for electrical steel is around 5 lakh tonnes per annum and is expected to double by 2016-17. Demand for electrical steel is expected to grow at a compounded annual growth rate (CAGR) of 15 per cent and the demand for CRGO grade is increasingly dependent on imports.
