December 03, 2008

BPSL plans long product facilities in Orissa

SBB reported that Bhushan Power & Steel Limited is planning an expansion into long products with the construction of mills for wire rods and heavy bars at its integrated steel works in Sambalpur in Orissa.

AS per report “The first phase of the project will see the installation of a 500,000 tonnes per year combination mill to produce wire rod and bars that should be commissioned by mid 2009. The second phase will see a heavy bar mill also of 500,000 tonnes per year capacity added that will be operational by 2010. The wire rods will be 5mm to 22mm in diameter and the bars 16mm to 80mm. The heavy bars will be 60mm to 250mm.”

Mr VR Sharma joint MD of Bhushan Power & Steel Limited told SBB that the mills will be built by European suppliers but declines to identify the plant builders contracted.

He added that "The long products will mainly cater to the automobile, forging and wire industries. We plan to export 50% of the products to neighboring countries and sell the balance domestically."

BPSL operates another 200,000 tonnes per year wire rod and bar mill at its Chandigarh plant in Punjab. With the two new units set for Sambalpur, its wire rod and bar production is expected to hit 1.2 million tonnes per year by 2010.