WCA November 2017

India Insight

Rebar mill Primetals Technologies has received an order from Pakistani steel rebar producer Agha Steel Pvt Ltd for the supply of a rebar mill. The new mill is designed to produce 300,000 tonnes of rebar per year. To optimise a combination of heating sources for incoming billets the rolling line will be equipped with an efficient heating system (EHS) that will reduce transformation costs. The pass schedule will be optimised to achieve a uniform wear of the rolls. Hot commissioning is expected for mid-2018. The bar mill will produce up to 50 tonnes of steel bar per hour, at a top rolling speed of 13m per second. The mill processes carbon steel billets with a square cross-section of 130mm x 130mm and a maximum length of 12m. The finished rebars have diameters between 8mm and 40mm. The productivity of the plant is maximised by rolling bars with diameters of between 8mm and 9.5mm in four-slit mode, and diameters between 10mm and 12.7mm in two-slit mode. Finished bar bundle weight is 3 to 4 metric tons, in bundle lengths of between 6m and 16m. Primetals is responsible for engineering the plant and will supply the process equipment from the billet induction furnace to the dispatching area. The EHS will govern the efficient use of the two main billet heating routes according to the production plan and billet length. The 12m length billets will go through a new in-line high power induction furnace located between the continuous casting. India’s largest wire rope manufacturer, Usha Martin Ltd, is preparing to sell one of its profitable ventures to reduce its overall debt. Usha Martin has appointed the Royal Bank of Canada as a merchant banker to look at prospective buyers, and other consultants have been appointed to help the company plan its future course. The Royal Bank of Canada is expected to submit its report in two months. Despite the net loss, the steel and wire rope making divisions are EBITDA positive, with wire rope in high demand for use in elevators, mining, crane, oil and other offshore industries. Agha Steel Pvt Ltd – Pakistan Website : www.aghasteel.com Rationalising assets

“We have hired a consultant which will prepare a roadmap for the company. Selling off one of two divisions (steel and wire rope) is also contemplated,” confirmed managing director Rajeev Jhawar following September’s AGM. The wire rope division contributes around one-third of total revenue, with the steel division generating the other two-thirds. Mr Jhawar said the company is looking at raising resources through asset sale and other means. The majority of resources raised would go towards paying off the debt, which he described as: “eating into the company’s finances”. Usha Martin Ltd – India Website : www.ushamartin.com Steel acquisition prospect Sajjan Jindal-owned JSW Steel is in talks with Algeria’s Cevital group to acquire its Aferpi steel mill in Italy. The private steel maker previously tried to acquire the mill in 2014, when it was known as Lucchini. The Algerian conglomerate Cevital, however, acquired Lucchini and renamed it Acciaierie e Ferriere di Piombino (Aferpi). A source suggested that JSW Steel may offer a financial consideration of $100 million to Cevital group to acquire the mill. JSW Steel is planning to increase its manufacturing capacity from its present 18 million tonnes to between 40 and 45 million tonnes by 2030. “If the country builds 300 million tonne capacity by 2030, we would like to plan accordingly to maintain our 15 per cent share,” said JSW Steel joint managing director and group CFO Seshagiri Rao. JSW Steel – India Website : www.jsw.in Regions in power link India’s Power Grid Corporation approved its funding investment in a high voltage direct current bipole link between Raigarh, Chhattisgarh in the western region, and Pugalur, Tamil Nadu in the southern region to Kerala in North Trichur. The new link will feature a 6,000MW, ±800kV HVDC bipole system between Raigarh and Pugalur, and has a commissioning schedule of 30 months from the date of approval.

Power Grid Corporation – India Website : www.powergridindia.com

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