Jindal Stainless to shut ferro alloy unit in Andhra Pradesh

NEW DELHI: Jindal Stainless today said it will temporarily shut down operations of the ferro alloys unit in Vizianagaram ( Andhra Pradesh) due to differences between the management and workers.

In a BSE filing, the company said: "Due to pending differences between management and workers who have lately been resorting to go-slow and other disruptive tactics, management has decided to temporarily shut down operations of the Ferro Alloys unit at Kothavalasa in Vizianagaram, Andhra Pradesh."

The production of ferro chrome will be shifted to more economical Jajpur facilities, it added.

"The management is engaged in active dialogue with the workers and hopes to resolve the issue in near future enabling it to resume operations. The operations of the company's other units will not be adversely affected by this shutdown," the filing said.

Jindal Stainless, a part of the USD 18-billion OP Jindal group, is a leading integrated manufacturer of stainless steel in India with a capacity of 1.8 million tonnes.

Shares of the company today rose by 0.27 per cent to settle at Rs 37 per share on BSE.