Jindal Steel projects $2.4 Billion expenditure to double output
Jindal Steel & Power Ltd. is planning an expenditure of $2.4 billion over the succeeding six years to ramp up capacity, including its peers in announcing massive expansions as healing from the pandemic boost demand.
The steelmaker plans to secure total crude steel capacity to 15.9 million tons by March 2025 from 8.6 million tons, the New Delhi-based company mentioned in an investor demonstration on Tuesday. The expenditure also comprises plans to more than double pellet production capacity to 21 million tons by the end of 2024, it has stated. The Naveen Jindal-led mill, once India’s biggest steelmaker by market value, is aimed to make fresh investments for growth and development, after aggressively reducing its debt levels by more than 60% since 2018.
The expansion plan is driven by aspirations of robust consumption as India vision invest 100 trillion rupees ($1.3 trillion) in infrastructure to skyrocket economic growth and establish jobs. Rivals Tata Steel Ltd. and ArcelorMittal Nippon Steel India Ltd., a joint venture amid ArcelorMittal SA and Nippon Steel Corp., have already declared plans to more than double capacity, lured by strong demand anticipation. Jindal Steel estimates annual demand will recover from pandemic-related disruptions and grow by 8% to 9% by the year 2025.