Oct 1: Indian multinational steel-making company Tata Steel had earlier informed that there were lots of synergies involved when it comes to the takeover of Bhushan Steel. According to a news report in this regard at the moment, Tata Steel is said to be looking to raise production at Bhushan Steel to 4 million tonnes by the end of the ongoing financial year.
Through the insolvency and bankruptcy process, Tata Steel had acquired the Bhushan Steel which was running on a loss. There are reports that the Bhushan Steel in Odisha which has a capacity of 5 MT is now functioning at 3.5 MT.
An official who is part the new team set up by Tata Steel in Bhushan Steel has been quoted as saying that the company is working towards increasing production to a level of 4MT a year by March 2019. Bhushan Steel’s 5 MT capacity plant is located near the Tata facility at Kalinganagar, and has a capacity of 3 MT.
The official had also revealed that the even with the Bhushan Steel take over at Rs. 36,000 crore, the Indian multinational steelmaker is speeding up with the expansion of its Kalinganagar plant. Though the Bhushan Steel plant doesn’t reportedly match that of Tata Steel’s, he said that the safety and the environmental aspects of the former need to be strengthened.
The upcoming plant will not only follow the strategy of Tata Steel as a steel producer but also as a service company with the extensive use of technology. Initially, the acquired company Bhushan Steel will continue to operate as a separate entity but later on the name of the company will be changed.
Post this, the company will resemble the Tata company. As per the statements made by the officials, the new administration will be leveraging and adding on to the marketing strengths of Tata Steel.
It took around a decade for Tata Steel to establish the 3 MT plant. With the takeover, the Indian steelmaker has got a plant of 5 MT capacity.