Sinosteel plans new unit in West Bengal

Kolkata: China’s steel service company and the largest importer of iron ore into China, Sinosteel, will be investing in a one million steel plant in West Bengal.

The earlier plan was to have a forged roll centre facility in the state but now over and above that Sinosteel would be setting up a steel plant.

Satyajit Singh, director (marketing), Sinosteel India said that land had been identified in Kharagpur. Singh said, early negotiations with the land owners had been held. The plant would be set up in a joint venture with a local partner. He was speaking on the sidelines of an international steel seminar organized by Steel Scenario.

Singh said, the details of joint venture structure were yet to be worked out. The company would apply for coal mines. The investment for the West Bengal steel plant had not been worked out. Singh said, projections had changed since the economic meltdown.

The company was also setting up a five million ton plant in Jharkhand but was yet to get land or mines in the state.

Sinosteel feels that even though West Bengal did not have iron ore mines, it was strategically placed and close to iron ore rich states. Singh pointed out that Chinese mills import iron ore for their steel and even then find it viable. But he also said that most of the other steelmakers have captive mines and it should be a level playing field.

For the forged roll facility, Sinosteel has already got the land in Haldia. Singh said, forged roll facility would not require much land. Merits mention, Sinosteel does not have any steel making facility and the ones in India would be the first.

Sinosteel is a comprehensive steel service company catering to the Chinese steel mills, meeting their raw material requirements, logistics and technical supply.