Tata Sponge to enter steel making business

The company's Board has recently approved a proposal to go for forward integration of the sponge iron plant with facilities to manufacture 0.7 mtpa long products, it adds.

Tata Sponge Iron Ltd. (TSIL) is planning to enter the steel making business, with an investment of INR 2,200 crore, reports a business daily.

The company's Board has recently approved a proposal to go for forward integration of the sponge iron plant with facilities to manufacture 0.7 mtpa long products, it adds.

At present, Tata Sponge has a 4 million tonne-per-annum (mtpa) sponge iron plant in Odisha’s Keonjhar district. 

The steel making business foray would be through the sponge iron route, the daily reports. 

As part of the steel plant, facilities like billet caster and waste-based power plant would be developed, according to the financial newspaper.

While the present sponge iron plant capacity would be enhanced with setting up an electric arc furnace and two additional kilns, Tata Sponge would not require additional land, as the integrated steel plant would come up over the 310-acre premises of the sponge iron plant, the paper adds.