Arjas Steel to boost steel capacity to 0.55 million tonne

To increase the annual production capacity to 5.5 lakh tons, Arjas Steel, formerly Gerdau Steel, planned a capital expenditure of Rs 6.1 billion. This represents an increase of more than 37.5% over the current capacity of the facilities in Andhra and Punjab.

The company has two facilities: Tadipatri in Mandi Gobindgarh in Punjab and the Andhra Pradesh area of ​​Anantapur. While the Punjab plant, which it bought in November 2020 for around Rs 1 billion, produces 1 lakh tonnes annually, the Andhra plant now has a capacity of 3 lakh tonnes.

According to the company, the capacity expansions will be completed in 2025.

Arjas supplies steel to the energy, automotive, railway and defense industries, as well as to export.

Tadipatri is investing in a new Kocks gauge block from Germany to improve quality and throughput, as well as a Garret coiling line to produce specialty steel in coils. To increase output, the unit will also add new furnaces and more steel refining capacity.

The capacity of Tadipatri will be increased by 25-30% as a result of the expansion.

Arjas acquired Modern Steel's auto parts business in Punjab in November 2020 for around Rs 1 billion.

Both companies produce specialized steel for the automotive industry. After the acquisition, Arjas Steel will be able to supply steel products to customers such as Maruti and Hero Morocorp.

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