Essar to inject $160mn into Canadian ops; step up production
Essar Steel is pumping in USD 160 mn into Canadian operations to ramp up production to 3.6 mn tonnes per annum to feed demand in North America, set up a captive power plant and clean up the environment.
By PTI |
CANADA: Essar Steel is pumping in USD 160 mn (nearly Rs 740 crore) into its Canadian operations to ramp up production to 3.6 mn tonnes per annum to feed demand in North America, set up a captive power plant and clean up the environment.
Algoma Steel, which was acquired by Ruias-promoted Essar Group last year and renamed Essar Steel Algoma, is firing on all cylinders after the USD 42.3 mn revival of its second blast furnace. The furnace was brought back into operation on August 12, this year and has helped increase output from to 2.6 MT from 2.1 MT.
"We are delighted that we have successfully implemented the best technological and engineering practices from across both the organisation.
This has resulted in a 30 per cent improvement in productivity. I am happy to say the integration has produced extremely positive results, with both organisations aligned with a view to growth," Essar Steel Algoma's COO Armando Plastino said.
The company would spend USD 160 mn to further increase production by 1 MT in the 12 months to March 31, 2009. "Most of the (funds for) capital expenditure will come from self generated cash," Essar Steel Algoma Vice President
(Finance) Sandeep Dixit told visiting Indian reporters here.
Algoma Steel, which was acquired by Ruias-promoted Essar Group last year and renamed Essar Steel Algoma, is firing on all cylinders after the USD 42.3 mn revival of its second blast furnace. The furnace was brought back into operation on August 12, this year and has helped increase output from to 2.6 MT from 2.1 MT.
"We are delighted that we have successfully implemented the best technological and engineering practices from across both the organisation.
This has resulted in a 30 per cent improvement in productivity. I am happy to say the integration has produced extremely positive results, with both organisations aligned with a view to growth," Essar Steel Algoma's COO Armando Plastino said.
The company would spend USD 160 mn to further increase production by 1 MT in the 12 months to March 31, 2009. "Most of the (funds for) capital expenditure will come from self generated cash," Essar Steel Algoma Vice President
(Finance) Sandeep Dixit told visiting Indian reporters here.
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A chunk of the investment would go towards setting up a co-generation power plant that would cut the steel plant's energy requirements by half. The captive power plant would use waste fuel from the steel plant to produce electricity and is expected to be commissioned by January next year. Start a SIP with as low as ₹500 with ET Money App!
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