Tata Steel had earlier said there was a lot of synergies in taking over Bhushan Steel.After acquiring debt-laden Bhushan Steel through the insolvency and bankruptcy process, Tata Steel is now aiming to raise its production to 4 million tonne (MT) by the end of the current fiscal, an official said.
Bhushan Steel's Odisha plant is presently operating at 3.5 MT against a capacity of 5 MT, the official said.
"The Bhushan plant in Odisha has a capacity of 5 MT but is currently operating at 3.5 MT.We are working to raise the production at least to a level of 4 MT a year by March 2019 as demand remains robust," the official, who is part of the new team installed by Tata Steel in the company, told PTI.
The Bhushan Steel plant is located close to TataSteel's Kalinganagar facility where it has a 3 MT capacity.The official said the Kalinganagar plant expansion is on track despite Bhushan's takeover at Rs 36,000 crore.
"Safety and environment aspects need to be strengthened in Bhushan Steel as they are not up to our (TataSteel's) internal standards," he said.
The new plant will follow Tata Steel's strategy of not just being a steel producer but a service company with extensive use of technology.
Though Bhushan Steel will continue to be operated as a standalone outfit for the time being, a change of name is imminent to make it resemble a Tata company.
The new management will be leveraging and complementing marketing strengths of Tata Steel, the official said.
Tata Steel had earlier said there was a lot of synergies in taking over Bhushan Steel.
Tata Steel took almost a decade to build 3 MT plant at Kalinganagar while the takeover of Bhushan Steel offered the steel major a readily available 5 MT plant, boosting its flat products.(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)