Sujana Metal Products Limited proposes to set up a Rs. 800-crore plant to manufacture billets from iron ore as part of expansion plans to emerge as an integrated steel product company in the country.
This was disclosed to reporters here on Friday by Sujana Group Chairman Y.S. Chowdhary and Managing Director R. K. Birla, while launching ‘Sujana Smart Steel”, a ready-to-use product aimed at large to mid-segment construction companies. Smart Steel would eliminate the need for cutting and bending of steel on construction sites, resulting in significant cost-cutting, time reduction and quality enhancement, they said.
Mr. Chowdhary said the financial closure for the billet plant would be achieved by December, 2009 and the finances would be met through debt and internal accruals. The location of the plant was yet to be finalised.
He said that it was also planned to invest another Rs.1,000 crore over the next three years for establishing 50 service centres across the country for converting ordinary steel into smart steel.
Mr. Birla said Smart Steel was the product of the future and was being used in the construction industry in the developed countries. The supply for Smart Steel would be coming from facilities at Shadnagar (near Hyderabad) and Chennai.
On the company’s performance this year, Mr. Chowdhary said the recent dip in the steel prices would not affect the revenues. The increase in the company’s capacity from 3 lakh tonnes last year to 5.3 lakh tonnes this year would offset any adverse impact.