Jindal Steel & Power Ltd., one of the leading steel companies in India, announced that it plans to invest US$2.4 billion to increase capacity over the next six years as the recovery from the COVID-19 pandemic has boosted steel demand.
“Domestic steel prices have rebounded from low levels of COVID-induced volatility and are increasing amid rising demand expectations,” the firm said in its August investor presentation.
The steelmaker said in a recent investor presentation that it will increase its total capacity from 8.6 metric tons to 15.9 million tons (MT) by March 2025. According to the statement, the company plans to more than double its pellet production capacity to 21 million tons by 2024.
On Monday, the steel company announced that its board of directors has approved fundraising measures that include issuing non-convertible, senior, unsecured, flat rate or US$1 billion worth of LIBOR bonds.
JSPL's plan includes raising funds as part of its long-term goal of becoming debt-free and increasing its production capacity to 15.9 MT by fiscal 2024.
The steelmaker said that it aims to increase its production capacity to 27 MTPA by using clean energy sources in the Vision 2030 that it has previously revealed. In May of this year, the company said it was on track to reduce its debt as it entered a new cycle of capital spending.
JSPL plans to expand its production capacity in Angul from 9 MT by fiscal 2021. JSPL plans to take a step into container construction from its Angul facility, which started with a production capacity of 15,000 containers per year.
Jindal Steel is also establishing a 2.25 MT hot rolled coil plant in the southern state of Andhra Pradesh in Nellore. As the plant is located near Krishnapatnam Port in South India, HRC will mainly target export markets.
In addition, the New Delhi-based company will more than double its pellet production capacity to 21 MT by 2024, according to the news.
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