Emerging segments to drive Tata Steel's Kalinganagar sales

Company to tap oil & gas, excavation, shipping verticals

Tata Steel's Kalinganagar greenfield steel project is looking to tap emerging, value-added products and segments like construction & projects, pre-engineered buildings, oil & gas, lifting and excavation and shipbuilding. At full ramp-up, the new segments are expected to account for 30 per cent of total sales from the Kalinganagar plant.
 

The steelmaker is almost close to operating the plant at full Phase-I capacity of three million tonnes per annum.

Tata Steel has conducted successful trials and started supplies to global leaders in lifting and excavation segment. It has also approvals from an oil marketing company for the supply of API grade steel, said a source close to the development. Products manufactured at Kalinganagar would help establish Tata Steel as a major player in large diameter water pipeline segment, besides strengthening its presence in the construction sector.

Tata Steel did not respond to the Business Standard questionnaire sent via e-mail.

Presently, the company's Kalinganagar facility is servicing segments like hot-rolled commercial, LPG cylinders, precision tubes and Railways. The superior hot strip mill (HSM) at Kalinganagar compared to Jamshedpur, both in width and tensile strength, is capable of addressing to an array of customer requirements. The mill has developed high-end application products such as HS 800, DP 600, API X70/X80 and S355 for lifting and excavation segment.

Through controlled cooling strategy in run out table of HSM, Tata Steel is developing high tensile grade material suitable for yellow goods and pre-engineered building customers. It is also developing new, targeted products for wheel rim applications, structural application for chassis reinforcement in light, medium & heavy commercial vehicles, thinner & high strength steel for solar panel structures and special grade steel for tubes used in high-end automotive applications.

Tata Steel is also keen to position its Kalinganagar plant as one of the biggest suppliers of high strength alloys to the automobile industry, especially alloys for car wheels. The steelmaker has commissioned the first phase capacity of three million tonnes per annum (mtpa) at Kalinganagar and this is entirely devoted to manufacturing flat steel products that find applications in automobiles and white goods.