JSW Steel Posts 6.64 Lakh Tons Crude Steel Production

OREANDA-NEWS. September 16, 2011. JSW Steel Limited reported Crude Steel production of 6.64 lacs tons, with a growth of 23% for August'2011 compared to that of corresponding month in the last fiscal year. Higher production is mainly attributable to the commencement of 3.2 MTPA expansion project at Vijayanagar Works on 20th July 2011

The break-up of production is as below:

Consequent to suspension of mining and transportation of Iron ore in Bellary district by the Honourable Supreme Court of India vide its order dt. 29/07/2011, the Company had to cut its production due to shortage of Iron ore.

Since, the Honurable Supreme Court of India gave ruling on 05/08/2011 by allowing NMDC to mine to the extent of 1 million tons per month from 06/08/2011, the Company restored production to 80% of installed capacity. Subsequently, the extension of order dt. 29/07/2011 suspending the mining and transportation of Iron ore in Bellary district by the Honourable Supreme Court to the districts Chitradurga and Tumkur on 26/08/2011, further restricted Iron ore supplies to the Company impacting the steel production. Thus the Vijaynagar plant on an average operated at 75% of installed capacity in August 2011. The production in August 2011, would have been higher had the suspension and transportation of mining of Iron ore not been there.

Considering the hardship faced by the Steel Industry in the region, the Honourable Supreme Court of India, vide its order dt. 02/09/2011 accepted the recommendation of the Central Empowered Committee to release 1.5 Million tons of Iron ore per month to the Steel Industry in the region from the existing stock. As the supply of Iron ore from this stock is yet to resume, the crude steel production in September 2011 is severely impacted. This cut in production is expected to continue till the resumption of the Iron ore supplies from the e-auction by 'Monitoring Committee' in terms of Honourable Supreme Court order dt. 02/09/20111.

JSW Steel Ltd., belonging to JSW group, part of the O P Jindal Group, is one of the lowest cost steel producers in the world. The group has diversified interest in mining, carbon steel, power, industrial gases, port facilities, Aluminium, Cement and Information Technology. JSW Steel Limited is engaged in manufacture of flat and long products viz. H R Coils, C R Coils, Galvanised products, Galvalume Products, auto grade / white goods grade CRCA Steel, Bars and Rods. Incorporated in 1994, it has grown to USD  9 billion in little over fifteen years. JSW Steel Limited has the largest galvanizing and colour coating production capacity in the country and is the largest exporter of galvanized products with presence in over 100 countries across five continents.