India’s top steel and freight producers plan to expand their native manufacturing portfolio to ramp up global sea trade. The move is an effort to curb imports and fill domestic supply gaps arising out of a pandemic-induced container shortage in the country.
Jindal Steel & Power (JSPL) plans to make around 50,000 containers a year and may expand its facilities with a Rs2bn investment that have current capacities of1,000-2,000 containers a month, noted VR Sharma, managing director, to the media on Aug 5.
Tata Steel and ArcelorMittal Nippon have also expressed their interest in reviving specialized steel output capacities, with the latter stating to the media on Thursday that it’ll leverage capacity at its Hazira unit.
This strategy will also enable India to make a foray into an otherwise competitive segment. China-owned CIMC, Singamas, and CXIC control 90pc of the current global container manufacturing share.
The government of India has also hinted at setting up a container hub in Bhavnagar, Gujarat and initiate pilot production projects, after representatives of local export organizations reached out about the container shortage situation in February this year.