Indian company plans to join SL entity to manufacture steel products

Rashtriya Ispat Nigam Ltd (RINL), a unit of Vizag Steel, India, is planning to enter into a strategic partnership with a Sri Lankan company to manufacture steel products in Sri Lanka.

The company has already called for ‘Expressions of Interest’ from interested parties for the Proposed Steel Processing Units (PSPU)/ Rolling Mills (RM) for Conversion of Billets into CTD/TMT Rebars and Structurals on wet leasing basis in Sri Lanka.

The Hindu Newspaper quoted Rashtriya Ispat Nigam Ltd Director (Commercial) T.K. Chand as saying that RINL had received several offers from Sri Lankan steel rod and bar manufacturers for the tie-up and the process of selection of the partner may come to a final stage by May.

“We will not make any investments into the plant. We are looking for a party with minimum three years experience in conversion of billets into CTD/TMT rebars and structurals and having a valid license for production. The entire capacity of SPU/RM shall be dedicated to RINL,” Chand added.

According to him, the steel maker, on its part, would supply billets for conversion into CTD/TMT rebars and structurals on a wet-leasing basis in Sri Lanka.

Another senior official said the RINL is looking at a plant with 1.5 million tonnes per annum capacity plant in the South Asian country.

The official said they would look at new manufacturing either in Hambantota or Trincomalee areas of the island nation, so that they could use the harbour network for export purposes to countries which include the Maldives and the Myanmar.

“A study revealed that there is good potential for RINL products in Sri Lanka. And also export of billets is easier to Sri Lanka from Chennai Port,” the official said, when asked why the company is zeroed in on Sri Lanka.

Chand said the Navratna Company was also planning to open a regional office at the World Trade Centre in Sri Lanka.

Replying to a query, he said currently RINL exports around 3 per cent of its production and has plans to increase it by 10 per cent in the coming two to three years.

The steel maker currently exports finished products to countries such as the US, UAE, Thailand, Bangladesh and Sri Lanka.

RINL is currently working on expansion, after which, the steel making capacity would increase to 6.3 million tonnes per annum (MTPA), from the existing 3 MTPA..