Oman- Sohar based Jindal Shadeed's rolling mill to be commissioned in Q4 2016

8/17/2015 4:49:39 PM

(MENAFN- Muscat Daily) Muscat-

Sohar-based Jindal Shadeed Iron and Steel Co's rebar rolling mill project with 1.4mn-tonnes-per-annum (MTPA) production capacity will be commissioned in the fourth quarter of 2016.

Cold trial is expected in October this year according to leading Indian producer Jindal Steel and Power Ltd (JSPL) which owns the Oman plant.

In its financial results for the first quarter ended June 30 2015 JSPL said its Oman operation continued its robust performance during the first quarter. 'At the Oman plant billet and rounds production increased to 0.25MT. Similarly sales and Ebitda on a year-on-year basis grew by six per cent and nine per cent respectively. The rolling mill project with a capacity of 1.4MTPA rebar is progressing well and cold trial is expected in October. The mill will be commissioned in the fourth quarter of 2016' JSPL said.

JSPL's consolidated steel production grew by 37 per cent year-on-year in the first quarter. 'This was possible due to enhanced capacity utilisation at the Angul and Oman steel plants. JSPL sold 1.1MT of steel in the first quarter registering a growth of 39 per cent year-on-year.'

The company said domestic steel manufacturers in India continue to face pressure from falling steel prices due to imports from China South Korea and other countries.

JSPL said that it is also in the midst of taking concrete steps to reduce its working capital and strengthen its financials by exploring various avenues to reduce its debt. 'Sale of non-core assets and listing of subsidiaries are a few of the options which the company is vigorously pursuing to reduce debt in financial year 2016.'

Last November Indian media reported that JSPL is mulling the listing of its Oman-based wholly-owned subsidiary on the Muscat Securities Market (MSM) to raise around US$500mn.

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