RSP to surpass capacity
Rourkela steel plant, (RSP) is poised to surpass its rated capacity of two million tonne this year for the first time since inception.
By TNN |
KOLKATA: Rourkela steel plant, (RSP) is poised to surpass its rated capacity of two million tonne this year for the first time since inception. Between April-August 2006, the plant has consistently managed to attain 100% capacity utilisation with all major production units showing high growth rates.
A traditional laggard in the SAIL family, RSP had so far struggled to achieve full rated capacity and only managed to do so for a few months during a year. RSP’s performance gains significance, since it is based in Orissa, a state where global steel majors like Mittal Steel and Posco have announced plans to set up large greenfield steel-making units.
Mr B N Singh, managing director, RSP told ET: “We are well on course to achieve 110% of rated capacity this year. The mood here is upbeat. We also hope to take up expansion of the plant within the next 8 to 10 months as part of SAIL’s corporate plan. As a result our hot metal capacity will go up to 3.5 million tonne by end-2010.”
In August 2006, production from its sinter plants and blast furnaces went by 69% and 50% respectively against production in August 2005. This in turn, led to a 51% increase in production of crude steel from steel melting shops (SMS) and 38% rise in output of saleable steel from its finishing units during August this year. It was also an all-time high for any month of August since the plant’s inception.
The highest ever output of saleable steel output was possible due to high availability of crude steel from SMS and share of high value added finished products like total hot rolled coils, plates from plate mill, hot rolled plates, electric resistance weld (ERW) pipes and CRNO steel (from silicon steel mill).
More importantly, for the first time all these areas are operating at 100% or more capacity utilisation consistently for every month of this financial year. In earlier years, the steel plant struggled to reach 100%, doing so only for a few months in a year.
A traditional laggard in the SAIL family, RSP had so far struggled to achieve full rated capacity and only managed to do so for a few months during a year. RSP’s performance gains significance, since it is based in Orissa, a state where global steel majors like Mittal Steel and Posco have announced plans to set up large greenfield steel-making units.
Mr B N Singh, managing director, RSP told ET: “We are well on course to achieve 110% of rated capacity this year. The mood here is upbeat. We also hope to take up expansion of the plant within the next 8 to 10 months as part of SAIL’s corporate plan. As a result our hot metal capacity will go up to 3.5 million tonne by end-2010.”
In August 2006, production from its sinter plants and blast furnaces went by 69% and 50% respectively against production in August 2005. This in turn, led to a 51% increase in production of crude steel from steel melting shops (SMS) and 38% rise in output of saleable steel from its finishing units during August this year. It was also an all-time high for any month of August since the plant’s inception.
The highest ever output of saleable steel output was possible due to high availability of crude steel from SMS and share of high value added finished products like total hot rolled coils, plates from plate mill, hot rolled plates, electric resistance weld (ERW) pipes and CRNO steel (from silicon steel mill).
More importantly, for the first time all these areas are operating at 100% or more capacity utilisation consistently for every month of this financial year. In earlier years, the steel plant struggled to reach 100%, doing so only for a few months in a year.
ADVERTISEMENT
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
