Essar Steel reports 47% growth in flat steel production

KOLKATA: Essar Steel India has reported a 47% growth in flat steel production at 5.6 million tonne in the year ended March 31, 2017, compared to 3.8 million tonne in the previous corresponding period. Production of value-added steel rose by 20% to 2.8 million tonne in FY17 as against 2.3 million tonne in FY16. The company's pellet production grew by 60% to 9.3 million tonne in FY17 compared to 5.8 million tonne in the previous corresponding period, Essar Steel said in a statement on Tuesday.

During Q4 ended March 31, 2017 (Q4FY17), Essar Steel recorded an increase of 25% in flat steel production at 1.5 million tonne, against 1.2 million in Q4FY16. The company registered a growth of 21% in pellet production in Q4FY17 at 2.3 million tonne compared to1.9 million tonne in Q4FY16.

Commenting on the performance, Dilip Oommen, CEO, Essar Steel said: “The growth clearly reflects the company’s march towards full capacity utilization in the coming years.

The value-added component in the product-mix has also jumped significantly. The downstream units are currently operating at capacity levels.” He added that various measures taken by ministry of steel and Government of India in the last fiscal led to performance improvement of the steel sector. “There is a need for continuity of those measures to ensure steel sector is able to sustain the momentum gained in the last fiscal,” he said.