Bhushan Steel plans 5k-cr Odisha facility; stock up

NEW DELHI: Bhushan Steel, the country's third-largest producer of secondary steel, on Tuesday said it plans to invest about 5,000 crore for setting up 1.8 MT of new capacity in Odisha.

At 9:57 am, shares of Bhushan Steel were trading 0.68% up at Rs 517.50 on the Bombay Stock Exchange.

"The company proposes to set up pickling line coupled with tandom cold mill and continuous annealing line (PLTCM & CAL) facility at Orissa with the capacity of 1.8 MTPA at a total investment of approximately 5,000 crore," it said in a filing to BSE.

The company, with a total production capacity of 2 million tonnes per annum (MTPA), has three plants in Uttar Pradesh, Maharashtra and Odisha and produces secondary steel products like cold-rolled coil, galvanised coil, high tensile steel strapping, colour coated coils, among others.

Bhushan Steel had earlier said that the company will have a production capacity of 5.5 MTPA by September, 2012 and will make an investment of 12,000-14,000 crore for the expansion. Last October, it had signed a pact with Sumitomo Metals of Japan for setting up a new six million tonne steel plant in West Bengal.