Sinosteel's Haldia Grassroot Steel Mill Project Delayed

---

Researched by Industrial Info Resources India (Delhi, India)--Sinosteel India Private Limited, which is a subsidiary of Chinese giant Sinosteel Corporation, is facing delays in building its first grassroot integrated forged steel mill in the Haldia district of West Bengal.

The company planned to construct and commission a 5,000-ton-per-year, cold-forged mill that will be used to create raw material for its plant. It later planned to gradually increase the capacity and start other units to manufacture finished steel products.

Sinosteel India Private Limited was expected to begin construction of its integrated grassroot forged steel mill, which has been delayed due to government clearances and allocation of land for mining purposes. Construction that was expected to begin by first quarter of 2011 has been delayed for almost a year.

The company still has not received all the clearances and still awaits details on the allocation of mining resources, both of which were expected by the last quarter of 2010.

The land for the plant has been allocated to the company. There is a strong possibility that the total investment cost will increase, as the company may need to build roads and railway lines for the transportation of raw materials.

The company expects to receive all the clearances from the government by third-quarter 2011, then review all the possibilities, allocate the required capital, and begin construction for the mill by the end of the year. The company has its own engineering, procurement and construction firm, which will need to hire subcontractors for construction and other basic works.

View Plant Profile - 1076604
View Project Report - 89001271

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.