Ispat Inds Not Seeking Buyer For Nagpur Unit

Ispat Industries has clarified that it is not seeking any buyers for its Kalmeshwar, Nagpur unit and that it had not approached Tisco for disposal of the plant.

The company has also said that the Kalmeshwar unit was not in any financial crunch. It was operating profitably with 100 per cent capacity utilisation and it would complete phase II expansion by the end of this year.

The company has stated that the hot strip mill plant in Dolvi has achieved 100 per cent capacity utilisation of the first phase and is adequately able to cover all its costs at the current market prices.

 

It is also exporting about 25-30 per cent of its production every month to markets in the west.

The clarification comes in response to a Business Standard report ("Tisco `no' to Ispat plant") published on May 5.

The report stated that Tata Steel had turned down Ispat Industries' offer to sell its Kalmeshwar complex near Nagpur. The report was based on information that an offer for sale of the unit was made to Tisco about three months back.

The report also quoted a senior Ispat official as saying that the plant was not up for sale.