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Tata Steel's Kalinganagar unit to focus on import substitute auto alloys

Steel News - Published on Mon, 17 Jul 2017

Image Source: Tata Steel
Business Standard reported that Tata Steel's Kalinganagar would focus on high-strength automotive alloys that can act as import substitutes. Such alloys used by the automobile industry are predominantly imported and the Kalinganagar plant would help cut dependence on imports.

A company source said that "The range of automotive alloys produced by our Jamshedpur plant is limited. This is because the hot stripping mill there is old and has its limitations. At Kalinganagar, we can roll out high strength alloys with dimensions of up to 1100 Megapascal.”

Tata Steel is keen to position its Kalinganagar plant as one of the biggest suppliers of high strength alloys to the automobile industry, especially alloys for car wheels. The steel maker has commissioned the first phase capacity of three million tonnes per annum at Kalinganagar and this is entirely devoted to manufacturing flat steel products that find applications in automobiles and white goods.

The steel company's Jamshedpur unit is already one of the leading suppliers to car makers like Maruti Suzuki and Toyota. Of the total nameplate capacity of 10 million tonnes per annum at Jamshedpur, 7 million tonnes per annum is for flat steel products and the rest 3 million tonnes per annum for long products.

Going ahead, the Kalinganagar plant would diversify to customised steel products for oil pipelines business. The plant in the future would cater exclusively to the needs of the domestic market. Presently, the steel plant there is exporting some products as it has some obligations under the Export Promotion Credit Guarantee scheme.

The official said that "We are exporting products like Tata Ferroshots to South East Asian nations. This product has been received very well. But, we would be gradually shifting our focus to the domestic markets once our export obligations are over.”

In the last financial year, Tata Steel's Kalinganagar plant exported one million tonnes of steel products. Besides Tata Ferroshots, hot rolled coils were also shipped.

Source :

Posted By : Sanju Moirangthem on Mon, 17 Jul 2017
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