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Jindal Stainless commissions Phase-I of brownfield expansion at Specialty Products Division

Thursday, 21 Oct 2021
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Jindal Stainless (Hisar) (JSHL) has commissioned 26,000 tpa capacity precision strip mill as part of Phase-I of its latest brownfield expansion plan at its state-of-the-art Specialty Products Division (SPD).  
This capacity expansion takes the total precision strip production capacity to 48,000 tpa from the existing 22,000 tpa. 
The capacity expansion of the precision strips will further strengthen the company’s presence in segments like auto, process industry, oil and petrochemical, and will be augmenting supplies to aerospace and electric vehicles. 
The capacity expansion at SPD is part of the company’s plan to leverage its leadership position in specialty and value-added products. After this expansion, operational capability will expand and products up to 650 mm width will be manufactured. This expansion will further help the company consolidate its leadership position in the international market. 
The latest capacity addition to JSHL’s Specialty Products Division portfolio will strengthen its product mix in the value-added segment and double the company’s share in global production to eight percent.  
The capacity enhancement is expected to boost JSHL’s revenues by eight to 10 percent. Over the next two years, the planned SPD expansion will also enable us to foray into new export markets with an expanded range of product offerings. 
The total capex for brownfield expansion is estimated at Rs 450 crore over the next two years. As part of the expansion of SPD, JSHL will increase its total precision strip capacity to 60,000 tpa by the end of Q2/FY23 with an estimated capex of Rs 250 crore. 
To expand its market outreach, the company will also augment its blade steel capacity to 24,000 tpa from the existing 14,000 tpa over a period of two years with an estimated total capex of Rs 200 crore.  
JSHL is among the world’s leading razor blade steel producers and supplies to global brands in this space. The plant is equipped to produce blade steel in thickness as low as 0.07 mm; nearly 20 billion blades are made out of the company’s blade steel every year. 
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