Salem Steel Plant, a unit of Steel Authority of India Ltd, should take steps to improve productivity and diversify "horizontally, instead of vertically" to expand market share and reduce costs, the government said today.
This has to happen in a defined time-frame, Rakesh Singh, Secretary, Ministry of Steel, said here after a meeting with plant officials.
"There are challenges faced by the plant in a fiercely competitive global market and members should aim at further improving productivity and diversifying horizontally instead of vertically in order to both expand market share and reduce cost," he said.
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Singh lauded the steps taken by the plant to contain the cost of power inspite of rise in tariff and expressed confidence that SSP has the capability to overcome all obstacles and emerge successful.
Earlier, he went around the SSP premises and witnessed its production processes in steel melting shop, hot rolling mill, cold rolling mill and blanking line.
