January 24, 2012: Essar Steel India Ltd, which recently increased its steel production capacity to 10 million tons per annum (mtpa), is confident that it will be able to attain full capacity utilisation during the next 18 months by focusing on consolidation of all the facilities.
The Hazira facility of Essar has 6.8 mtpa DRI modules (6 modules), 1.7 mtpa Blast Furnace, 0.87 x 2 Corex Module 1 and 2.
"We have invested Rs 37,500 crore till now to set up a total steel making capacity of 10 mtpa and now we will have to ramp up all the facilities to ensure that we reach the 10 mtpa capacity, by producing cost effectively, and by making sure that the quality is of global standards. We have also to ensure that we focus on getting the returns from the investments that we have already made," Essar Steel's CEO and MD Dilip Oommen told ISMW.
"We have to reach 10 mtpa production in another one and half years," he said, adding that they do not want to produce 10 mt for the sake of producing.
"The facilities are there, we can produce, but it is important that we take steps to produce the right quantity and right quality for the right market," company's Chief Financial Officer Amit Agarwal said.
"We have the capability, we can produce that 10 mt and cater to the export market, but we do not intend to do that. We have a very methodical way of doing it," Agarwal added.
Asked whether in the current market situation, their production capacity will be far more than the demand of steel, particularly flat products in India, Oommen said, "Only time will tell. We will first consolidate our present capacity. Also we have to ensure that we maintain the returns on our investment and make sure that we make our facility and operations up to global standards."
Source: ISMW