Ispat plans to set up engineering SEZs

TIMES NEWS NETWORK[ THURSDAY, NOVEMBER 30, 2006 01:29:59 AM]

NEW DELHI: Ispat Group is planning to set up the first specialised
engineering and metallurgical SEZs in the country. The group already has
interests in steel, mining, textile and power.

Ispat Industries MD Vinod Mittal told ET: “We are looking at developing
a specialised metal-related SEZ in Maharashtra. We see an opportunity in
this segment which is used for making various automobile products.” The
SEZ will try to attract investments from auto and auto component
companies among others.

Though he did not spell out details of the project, it is learnt that
the group is looking at developing the SEZ over an area of about 3,000
acres which would be able to absorb investment worth Rs 3,000 crore.

The SEZ will tap into the big opportunity emerging in the automobile
industry in the Mumbai-Pune belt. In recent times, many global
automobile companies have announced plans of setting up greenfield units
or ramping up existing operations.

This has thrown up opportunities for steel companies in terms of
increased demand for steel products used for making intermediate
products including components.

Ispat is planning this diversification along with a brownfield expansion
of its steel
manufacturing business. The estimated investments for the expansion of
steel capacity is pegged at Rs 2,500 crore. The company is looking at
various options of funding the investment plan.

The brownfield expansion programme would be completed by 2008. This
would increase the capacity from the existing 3.6-mn tonnes to 5.4-mn
tonnes at the Dolvi plant. Ispat Industries, the flagship company of the
group also has a unit at Kalmeshwar where it manufactures cold rolled
steel.

http://economictimes.indiatimes.com/articleshow/644399.cms