Rashtriya Ispat Nigam Ltd (RINL) looks to set up a steel plant in partnership with South Korean automotive manufacturer Hyundai Motor Company if it finalizes Vizag as its site for manufacturing high-grade steel.
A Preliminary visit was conducted by the team and the team would give their feedback to the ministry, RINL Chairman and Managing Director P K Rath said.
RINL has about 3,000 acres of land at Vizag in Andhra Pradesh that can be utilized for the project, which will not be less than 3-million-tonne capacity, he said.
Rath said ‘If the project is finalized then RINL will likely be focused on the high-grade flat steel with a special emphasis on auto-grade steel and long product manufacturing for the automotive sector. For RINL, the land would be its main equity.”
If Hyundai decides to form a joint venture with RINL for a plant, the government might have to step in to ensure raw material linkages, as the public sector has no raw material security.
“RINL has decided to diversify the risk of sourcing entire requirement of iron ore from National Mineral Development Corporation. We have already sourced one-third of the requirement recently from non-National Mineral Development Corporation sources,” he said. Rath was speaking on the sidelines of a Steel & Metallurgy conference on Integrated and Secondary Steel Sector.
RINL is in the process of ramping up capacity. Next year, it will have a capacity of 7.3 million tonnes and is likely to end the current year with 6.3 million tonnes.