KALINGA NAGAR (JAJPUR): Mesco Steel has firmed up plans to integrate finished steel making facility and expand capacity to 4.5 mt per annum over the next four years.
The Mid East Integrated Steel Ltd (MISL) plant at Kalinga Nagar which has a 1.2 mt pig iron facility will be upgraded to 3.50 mt finished steel making capacity even as the recently acquired Maithan Ispat Ltd, christened Mesco II, is to undergo revamp and expansion from 0.8 mt to 1 mt. The brownfield expansion will raise the total investment to Rs 13,500 crore. The expansion and forward integration of MISL will be done in a phased manner.
The phase I for converting the 1.2 mt facility to steel making would be carried out at an investment of Rs 2,500 crore.
“For increasing the steel making capacity to 3.5 mt, the investment would be around Rs 9,000 crore. The total investment in expansion of MISL would be Rs 13,500 crore”, Director Finance, Mesco Steel, Natasha Singh Sinha said.
The process for modernisation and expansion of Maithan Ispat from 0.8 mt to 1 mt has commenced with funds to the tune of Rs 260 crore already tied up for the first phase. This would enable Mesco Steel to ramp up capacity to 2.2 mt.
“The aim is to establish ourselves as a full-fledged finish steel maker with speciality in long products. The MISL plant has undergone a major revamp of both the blast furnaces at a cost of Rs 70 crore over the last 18 months”, Joint Managing Director P C Sahu said.
Mesco is raising the output capacity of its Roida iron ore mines from 3 MTPA to 6 MTPA while getting ready to develop the Malangtoli mine which got the government nod recently.
Sahu said, the plans for transfer of Korean steelmaker Posco’s Finex plant to Mesco have made significant headway. The 0.6 mt capacity plant at Posco’s Pohang facility will be dismantled and relocated to MISL’s Kalinga Nagar unit.
“Discussions on the contours of the partnership and shareholding are in advanced stages and an agreement is expected within three months. JV route will be taken for establish allied facilities like the 3 lakh tonne oxygen plant and 100 MW power plant”, the official said.