Tata Steel to Construct First Steel Recycling Plant in India

SEATTLE (Scrap Monster): Tata Steel Group announced that it has entered into an agreement with a local company to set up a full-fledged scrap recycling plant in India- the first of its kind in the entire country.

The joint venture partnership announced with Aarti Green Tech, a subsidiary of Ludhiana-based Aarti Steels, has announced Rohtak in the State of Haryana as the location for the proposed plant. The plant will be built at an expense of around INR 150 Crores and will have a processing capacity of nearly 5 lakh tonne per annum. The plant features state-of-the-art equipment and an electric arc furnace. The commercial production is expected to commence in the second half of the current fiscal.

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Announcing the decision, T.V. Narendran, CEO and MD, Tata Steel noted that the company has decided to set up the steel recycling business in order to meet the growing demand for steel in the long run. The facility will lead to formalization of scrap market in the country, which is currently highly fragmented and dominated by unorganized players. The opening of the plant is expected to accelerate the transition to scrap-based steelmaking process in the country, he said. The company intends to build similar steel recycling facilities across India, Narendran added.

As per rough estimates, India’s annual scrap demand currently stands at around 30 million tonnes, out of which the country imports nearly 5 million tonnes every year.