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JSW Steel Cuts FY25 Capex Plan

JSW Steel reduces FY25 capex, defers expansion.

Published

4 months ago

October 30, 2024

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JSW Steel has announced a substantial reduction in its capital expenditure (capex) plan for FY25, slashing it by up to Rs 4,000 crore as part of a strategic re-evaluation of ongoing and future projects. The steel giant decided to defer its Vijayanagar plant’s Blast Furnace 3 expansion, a major project originally slated to significantly boost its production capabilities. The move is largely driven by cost-control measures in response to changing economic and market conditions within the steel industry.

The original capex plan, designed to fuel growth and meet the projected demand surge in India and overseas, has been adjusted as JSW Steel takes a cautious approach to capital allocation. The deferred Vijayanagar expansion would have included adding substantial capacity at one of India’s largest steel manufacturing facilities. However, the company’s revised strategy now prioritizes optimizing current assets and enhancing operational efficiency over new expansions, signaling a focus on financial stability amid fluctuating market dynamics.

This capex reduction reflects JSW’s strategic pivot in response to global economic pressures, aiming to maintain a resilient balance sheet and manage expenditures while still achieving core operational goals. The company emphasized that while certain high-capex initiatives are on hold, it remains committed to completing essential projects to support the growing infrastructure demand, especially in domestic markets.

The capex adjustment aligns with broader trends in the steel sector, where companies are recalibrating their investment strategies due to rising input costs and market uncertainties. By scaling back and focusing on current facilities, JSW Steel aims to bolster its financial position, ensuring sustainable growth in a challenging environment.

The deferral of the Vijayanagar blast furnace expansion illustrates the company’s adaptability and focus on long-term growth. This strategic shift is expected to maintain JSW’s stronghold in the Indian steel industry while positioning it to capitalize on future growth opportunities with a leaner, more flexible financial approach.

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Ministry of Steel Organises Chintan Shivir for CPSE leaders

35 young managers from CPSEs were introduced as future industry leaders.

Published

5 days ago

February 18, 2025

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The Ministry of Steel organized Chintan Shivir, a day-long session focused on the future of India’s steel sector, at Hotel Taj West End, Bengaluru. The event brought together CPSE leaders under the Ministry of Steel to deliberate on key industry topics and shape a path forward.
The gathering was graced by Shri H. D. Kumaraswamy, Hon’ble Minister of Steel and Heavy Industries (virtually), along with Shri Bhupathiraju Srinivasa Varma, Minister of State for Steel and Heavy Insdustries, as Chief Guest. Shri Sandeep Poundrik, Secretary, Ministry of Steel, and CPSE heads also participated, reinforcing a unified approach towards industry growth.
Shri Sandeep Poundrik highlighted the importance of industry excellence, self-reflection, and continuous learning. “This forum provides an opportunity to enhance operational efficiencies and foster innovation, ensuring sustainable and impactful growth.”
A key highlight of the event was the launch of the official website for India Steel 2025, set to take place from 24-26 April 2025. Additionally, 35 young managers from CPSEs were introduced as future industry leaders, tasked with driving efficiency and cost optimisation.
The Chintan Shivir concluded with a collective commitment from CPSEs to strengthen India’s steel sector globally. The event marked a crucial step in uniting stakeholders, fostering strategic discussions, and laying the foundation for a resilient and competitive steel industry.

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Tenova to Supply Galvanising Line for PT Tata Metal Lestari

Tenova will provide a hot dip galvanising line for Indonesia’s PT Tata Metal Lestari.

Published

1 week ago

February 13, 2025

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Tenova, a leading developer and provider of sustainable solutions for the green transition of the metals industry, has signed a contract with PT Tata Metal Lestari, one of Indonesia’s premium manufacturers of painted and coated steel products, and part of the global steel group Tatalogam, for the supply of a new hot dip galvanizing line for zinc aluminium magnesium alloy coated coils.

The new line, able to process Al-Zn, Al-Zn-Mg, and Zn-Al-Mg coated coils; will be installed on the premises of Tata Metal Lestari’s Sadang Plant in Cijaya, Kabupaten Purwakarta, Indonesia, with an annual capacity of 250,000 tonne.

The scope of work includes the engineering, supply, and supervision of a complete set of equipment for the hot dip galvanizing line, including advanced level 2 electrical and automation systems, specifically developed by Tenova Italimpianti, a well-known Tenova brand and leader in technologies for reheating, heat treatment, strip processing, acid regeneration plants and cold rolling mills.

The new hot dip galvanizing line will produce first-class products with optimal surface quality and strip purity, thanks to the cleaning section, which removes surface contaminations, and to a combination of mechanical, hydrodynamic, and chemical processes. The furnace is designed to strictly separate the furnace atmosphere, the combustion process, and the ambient environment, preventing deterioration in the surface condition of the strip during heat treatment. The air knife systems also contribute to providing optimal quality for galvanized surfaces and the inline skin pass mill is designed to finish the coated surface with a controlled surface imprint, improving the strip shape.

“Thanks to this new project, PT Tata Metal Lestari will become a leading producer of aluminium, zinc and magnesium alloy coated steel coils for Indonesia and a reference point for the Western market,” stated Stephanus Koeswandi, CEO at PT Tata Metal Lestari. “We are pleased to collaborate with Tenova on this achievement, recognizing its expertise and capabilities in delivering customized and advanced technical solutions.”

“The concept design of PT Tata Metal Lestari’s line perfectly combines the highest technology for the production of Al-Zn, Al-Zn-Mg, and Zn-Al-Mg coated coils with up-to-date customized operational processes,” added Giuseppe Zanzi, Chief Representative Officer, South East Asia and Oceania at Tenova. “This new line can guarantee high quality and stable production, together with the flexibility to use three types of zinc, aluminium and magnesium alloys coatings.”

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Baldota Group to Set Up Rs 540 Billion Steel Plant in Koppal

This investment follows the group’s earlier venture in November 2022.

Published

2 weeks ago

February 12, 2025

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Bengaluru-based Baldota Group has announced plans to establish a massive steel plant in Karnataka’s Koppal district with an investment of Rs 540 billion. The integrated steel unit, to be developed under Baldota Steel and Power Ltd (BSPL), will have a production capacity of 10.50 million tonnes per annum (MTPA) and is expected to generate 15,000 jobs.

A memorandum of understanding (MoU) formalising the project will be signed at the Global Investors’ Meet between the Karnataka government and Baldota Group. The initiative aims to boost the state’s steel production while driving large-scale employment.

Baldota Group, known for its diversified interests in mineral exploration, mining, industrial gases, pellet production, wind power, and waste treatment, operates iron ore mines in Karnataka through its subsidiary MSPL Ltd. This latest investment follows the group’s earlier venture in November 2022, when its subsidiary Aaress Iron & Steel Ltd announced a Rs 180 billion steel plant in Koppal with a 3.5 MTPA capacity, promising 10,000 jobs.

(Deccan Herald)