Tata Steel plans to raise capacity to 30mn-tonnes in 10 years

Calcutta: Tata Steel aims to increase its capacity to at least 30-million tonnes by 2015.

Its executives say that they are discussing their production target for the next 10 years, and are looking at a 30-mt capacity by 2015. Till now, the company had been looking at capacities of 15 million tonnes, to be achieved by 2010. These capacities were to be added at an investment of Rs25,000 crore.

At present, its annual production is seven million tonnes with the Jamshedpur plant producing five million tonnes. The acquisition of Singapore-based NatSteel has also increased its capacity by two million tonnes. NatSteel has six plants in Asia and Australia.

Tata officials said that Indian companies must step up capacity to stave off competition from China, which might produce 500-million tonnes steel by 2015, and would have the potential to swamp the domestic market. The officials said that new capacity addition will be dispersed among many countries.

The company is currently eyeing a gas-based plant in Iran and is also in talks with Bangladesh. NatSteel has provided Tata steel with access to Malaysia, Thailand, Vietnam, the Phillipines, Australia and China. Tata Steel is also augmenting capacities at Jamshedpur, while its new facilities are in various stages of development in Orissa and Chhattisgarh. These three eastern states put together have the bulk of domestic iron ore reserves.