Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

JSW Steel states it will complete the expansion of its Dolvi works by March 2021. After the expansion, the plant’s total steelmaking capacity will double to 10mn mt per annum with an investment of about Rs150bn ($2.03bn). 


JSW Steel’s director-commercial marketing and corporate strategy Jayant Acharya informed media that already over 95pc of the work has been completed. 


Earlier delays in expansion 

The ramp-up plans had earlier run into roadblocks that delayed its timeline. In late 2019, work on the project halted amid severe rainfall and weak domestic demand. In early 2020, the COVID-19 pandemic forced the mill to suspend production. A disruption in the machinery supply chain, non-availability of workers, and experts due to travel restrictions, both at the domestic and international levels affected the expansion schedule. In April 2020, the steelmaker resumed production and expansion activities. 


The expansion project comprises installing a blast furnace with an annual capacity of 4.5mn mt, a supporting 5mn mt of steel melt shop, and a 5mn mt of hot strip mill. The plant would also have an 8mn mt of pellet plant and four kilns of 600 TPD lime calcination plants (LCPs), besides a captive power plant. 


With the expansion of the Dolvi Works, the company’s total annual steelmaking capacity would surpass the 23mn mt from the present 18.1mn mt. The steelmaker has a manufacturing facility with an annual capacity of 12mn mt at Vijayanagar in Karnataka, which is the largest single-location steel-producing facility in India. It also has a 1mn mt per year capacity plant in Salem, Tamil Nadu.


JSW has also planned to ramp up iron ore production and has acquired four iron ore mines – at Jajang, Nuagaon, Ganua, and Narayanposhi in Odisha in February 2020. These mines together have 1,131mn mt of reserves.     



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