Tata Steel aims to restart the one million tonne (MT) NINL steel plant in the next three months, its CEO and MD TV Narendran said on Wednesday.
Tata Steel on Monday completed the acquisition of NINL through its subsidiary Tata Steel Long Products (TSLP) for consideration of Rs 12,000 crore.
The Odisha-based factory has been closed for almost two years.
Tata Steel’s next step will be to take ownership of NINL and work hard with employees and other stakeholders to realize the full potential of the asset, Narendran told PTI when asked about the company’s future strategy. regarding the newly acquired steelworks.
“We are ready to work with existing employees and restart the factory which has been closed for almost 2 years. We hope to start production within the next 3 months and reach full capacity within the next 12 months,” said said the top said the official.
Meanwhile, Tata Steel will also work to finalize plans to expand NINL’s capacity to 5 million tonnes and take necessary approvals internally and externally.
On January 31, Tata Steel announced that it had won the tender for the acquisition of 93.71% of the capital of NINL, a steelmaker based in Odisha.
Asked about the reason for the delay in the acquisition process, he said: “It took time because there were several issues to be resolved between the multiple shareholders of NINL and us.” In addition to a 1 MT steel plant, NINL has its own captive power plant to meet internal energy requirements and an air separation unit for the production of oxygen, nitrogen and argon.
It also has its own captive iron ore mines which are under development.
The acquisition of NINL was essential for Tata Steel to build a complex dedicated to long products.