Shyam Metalics and Energy on Monday announced a 20% increase in total installed capacity for sponge iron products as outlined in the capex plans for financial year 2021-22.
The company said it received 'Consent to Operate' from state Pollution Control Board, Odisha and West Bengal Pollution Control Board respectively. Following the clearances, the total installed capacity for sponge iron products will increase by 20%, from 1.39 million tons per annum (MTPA) to 1.67 MTPA, the company said in a press release.The incremental capacity to commence operations in December 2021. Furthermore, the company said it is expecting to receive similar clearances for commissioning an aluminium foil plant in West Bengal. The proposed installed capacity of 0.03 MTPA is also expected to start commercial operations in December 2021.
In addition, the company has also received CTO from West Bengal Pollution Control Board for the scheduled capacity expansion at Jamuria plant. The expansion will add 0.25 million tons per annum of incremental capacity across steel products. The aggregate capacities of Sponge Iron, MS Billet & Long Products are slated to increase by 7%, 6% & 10% respectively.
Commenting on the developments, Brij Bhushan Agarwal, vice chairman & MD of the company said, The capacity expansion at our Sambalpur & Jamuria plants comes at an opportune time as the steel industry continues to expand and the demand for our product remains high. We are committed to our expansion plans and have already invested Rs 464 crores from the total budget of Rs 850 crores earmarked towards capital expenditure from internal accruals in financial Year 2022.
He further added, "As outlined in our expansion plan for the year, the expansion at Jamuria plant will also enable us to meet the increasing demand for our products. Our operational excellence in producing high value long product structural steel in a cost effective manner will continue to give us an edge.
Shyam Metalics and Energy (SMEL) is an integrated metal producing company based in India with a focus on long steel products and ferro alloys. It is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.
Shares of Shyam Metalics and Energy (SMEL) fell 0.33% to Rs 319.45 on Monday.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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