India’s based Welspun Corp is setting up a new rebar manufacturing unit at Anjar, Gujarat, through a proposed demerger scheme of Welspun Steel limited (WSL) with WCL. The annual production capacity of the new unit will be 350,000mt.
The company has started the foundation work and expects the greenfield project to be completed by the end of September 2022. The estimated cost of the project is Rs2.15bn.
The company already has a facility producing Direct Reduced Iron (DRI) and steel billets with an annual capacity of 275,000-280,000mt at Anjar.
The company plans to enter downstream rebar business amid expectations of a sustained strong commodity cycle going forward. It believes that government thrust on infrastructure development and the resultant construction boom will significantly contribute to their earnings.
The company’s biggest advantage that it has linkage with NMDC for sourcing iron ore to feed its BF as well as DRI unit.
Welspun Corp has a capacity of more than 2.5 mn mt in Dahej, Anjar, Mandya, and Bhopal in India. Other units are located at Little Rock in the USA and Dammam in Saudi Arabia.