Jindal Adding 400,000 Tons to Russia's Stainless Production

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Researched by Industrial Info Resources (Sugar Land, Texas)--Russian production of stainless steel in 2006 was 127,400 tons, which was the same as the production figure for 2000. But over the next four years, the goal is to boost production to 900,000 tons annually, with Jindal Stainless' new plant to contribute 400,000 tons per annum (TPA) to the increased output.

The project will be located in Kingisepp town in the Leningrad region near Russia's border with Estonia, about 140 kilometers west of St. Petersburg. Construction of the plant is scheduled to take one year from final approvals, which are expected shortly. Most of the stainless steel produced at the plant will be sold in the domestic Russian market to meet fast-growing demand for the construction, shipbuilding and kitchenware sectors. Jindal currently supplies about 1,500 tons of cold rolled stainless sheet and hot-rolled plates to Russia every month.

The plant will be wholly owned by Jindal. The company is making a $100 million fixed capital investment. Another $315 million is needed in working capital. Currently, Jindal is working on the project's viability and bankability and selection of equipment suppliers.

Jindal Stainless is a member of the $6 billion Jindal Organization, which has a strategy of self-sufficiency of coal, iron ore and power supplies. Current projects in India for JSW Jindal Steel are a 6 million-TPA steel plant in Orissa with an investment of $3.3 billion and another 6 million-TPA steel pant in Jharkand with an investment of $3.6 billion. Another group company, Jindal Power, is constructing the 1,000-MW Jindal super thermal power plant at Raigarh with an investment of more than $1.1 billion. For more information, view related July 23, 2007, article - Jindal Plans $25 Billion Projects in Indian and Bolivian Steel, Iron and Power.

The new steel plants are scheduled to be in operation in 2009 and will assist in lifting JSW's steel production from 3.8 million TPA to 10 million TPA by 2010. ABB has won a $127 million contract with the group to supply power and automation solutions for two group power plants that will supply power to the mills and sell surplus power to utilities.

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