After acquiring debt-laden Bhushan Steel through the insolvency and bankruptcy process, Tata Steel is now aiming to raise its production to 4 million tonnes by the fiscal end. Bhushan Steel’s Odisha plant is currently operating at 3.5 mt against a capacity of 5 mt.
“The Bhushan plant in Odisha has a capacity of 5 mt but is currently operating at 3.5 mt. We are working to raise the production at least to a level of 4 mt a year by March 2019 as demand remains robust,” an official, who is part of the new team formed by Tata Steel, told PTI.
Bhushan Steel’s plant is located close to Tata Steel’s Kalinganagar facility where it has a 3 mt capacity. The official said the Kalinganagar plant expansion is on track despite Bhushan Steel takeover at Rs 36,000 crore.
“Safety and environment aspects need to be strengthened in Bhushan Steel as they are not up to our (Tata Steel’s) internal standards,” he said.
The new plant will follow Tata Steel’s strategy of not just being a steel producer but also a service company with extensive use of technology.
Though Bhushan Steel will continue to be operated as a standalone outfit for the time being, a change of name is imminent to make it resemble as a Tata company. The new management will be leveraging and complementing the marketing strengths of Tata Steel, the official said.
Tata Steel had earlier said there were a lot of synergies in taking over Bhushan Steel. It took almost a decade for Tata Steel to build a 3 mt plant at Kalinganagar, while the takeover of Bhushan Steel has offered the steel major a readily available 5 mt plant.