JSW forays into manufacture of electrical steel
JSW Steel, in line with the strategy of increasing its portfolio of value added products, is now foraying into the manufacture of Electrical Steel. The company is planning to set up an electrical steel manufacturing facility of 0.6 MTPA capacity at its integrated steel works at Vijayanagar. Initially, this facility shall produce 0.4-0.5 MTPA of Cold Rolled Non-grain Oriented (CRNO) grade electrical steel. The company will also take sight on the production of Cold Rolled Grain Oriented (CRGO) grade in future. Implemented in a phased manner, JSW envisages becoming the largest Electrical Steel producer in the country. The first phase of the facility shall produce 0.2 million tonnes per annum CRNO and which shall be expected to get commissioned in next 24 months from the date
of receiving requisite approvals. JSW and JFE signed a strategic collaboration agreement in the year, 2010. In line with this agreement, both companies have already entered into agreement to collaborate in automotive steel manufacturing at Vijayanagar works and now intend to extend its collaboration to Electrical Steel. JFE is one of the largest integrated steel producers in Japan with extensive experience and access to advanced technologies required for the production of high quality steel products, energy management and environmental management. JSW aspires to fully equip in order to adhere to the stringent quality standards required Electrical Steel with the support of JFE.
Electrical Steel is a high grade product which has seen scant development in India as the technology required is largely inaccessible. Due to the technological
constraints involved in the production of Electrical Steel, the market is significantly dependant on imports. With the focus on energy efficient products, the Ministry of Steel as well as the Ministry of Power are pursuing aggressively with steel makers in the country to encourage domestic production of Electrical Steel. Major consuming sectors for this product are power, capital goods, consumer durables and motors for automobiles etc. The present demand of Electrical Steel is about 0.5 MTPA and it is expected todouble by the year, 2016-17. The demand for CRGO grade electrical steel is metpurely via the import route while CRNO grade is increasingly dependent on imports as availability from domestic sources remains consistently insufficient. The demand of Electrical Steel is expected to grow at a CAGR of 15%. Commensurate with this rise in demand JSW expects to cater to the growth by scaling its manufacturing facilities.