The company intends to expand its product portfolio, particularly in the long steel segment

The board of directors of Indian steel producer Tata Steel has approved a series of decisions regarding future capital expenditures in the country, according to The Hindu.

It plans to expand the capacity of Neelachal Ispat Nigam Ltd. (NINL) in Odisha by 4.8 million tons per year (first phase). This move will allow Tata Steel to increase its long-rolled product portfolio, especially in the highly profitable retail segment.

In addition, the funds necessary for design and engineering work to create a 2.5 million tonne per year thin slab casting and rolling facility at the Tata Steel Meramandali steel plant in Odisha have been approved, as well as the process of obtaining all necessary regulatory approvals.

The company also intends to establish a hot-rolled pickling and galvanizing line with a capacity of 0.7 million tons per year at its existing cold rolling complex in Maharashtra.

“This will be the first facility of its kind in India, enabling Tata Steel to meet the import substitution needs of its automotive customers and further strengthen its leadership position in this segment,” the company said.

The steel manufacturer said it had signed a memorandum of understanding with Lloyd Metals & Energy Ltd for a partnership in iron ore mining and logistics, including slurry pipelines, pellet production, and steel production. The parties will jointly explore such opportunities in the Gadchiroli area (Maharashtra).

It should be recalled that Tata Steel intends to transform its plant in Kalinganagar (Odisha) into its largest production site with a steel production capacity of over 16 million tons per year. The company has currently invested 50 billion rupees in the enterprise. This has become the largest organic expansion of capacity in the history of the steel manufacturer (from 3 to 8 million tons). Its highlight was the commissioning of India’s largest blast furnace.