JSW Steel revealed on Thursday that it has begun manufacturing hot-rolled plates at its Dolvi works plant in Maharashtra.
“JSW Steel has commenced production of Hot-rolled plates from the new 5 million tonnes 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.
According to Morgan Stanley's latest sector survey, the present cycle bears some similarities to both previous 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 tonnes per annum by the end of Q1 of FY22.
In order to take Dolvi’s capacity from 5 million tonnes per annum to 10 million tonnes per annum, some upstream and downstream facilities were planned with 4.5 million tonnes per annum of Blast furnace with a 5 million tonnes per annum of Steel Melt Shop and a 5 million tonnes per annum of hot strip mill and an 8 million tonnes per annum of pellet plant.
Now the 5 million tonnes per annum 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 million tonnes per annum and after expansion in Vijayanagar, Dolvi and Salem along with the BPSL acquisition, the capacity is likely to go up to 27 million tonnes per annum, making the company the largest steel producer overtaking Tata Steel which has 20.6 million tonnes per annum capacity.