Shyam Metalics announces 20% increase in Sponge Iron manufacturing capacity, boosting from 1.39 MTPA to 1.67 MTPA

Shyam Metalics and Energy Limited (SMEL), a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys, announced a capacity expansion as outlined in the capex plans for Financial Year 2021-22. The company has made significant progress in its endeavor to increase the existing integrated installed facility of 5.7 million tons to 11.6 million tons by 2025.

We are pleased to announce that the Company and its Material Wholly Owned Subsidiary i.e., M/s Shyam SEL & Power Ltd has received "Consent to Operate" from State Pollution Control Board, Odisha and West Bengal Pollution Control Board respectively. Following the clearances, the total installed capacity for sponge iron products will increase by 20%, from 1.39 million tons per annum (MTPA) to 1.67 MTPA. The incremental capacity to commence operations in December 2021.

Furthermore, the company is also expecting to receive similar clearances for commissioning an aluminum foil plant in West Bengal. The proposed installed capacity of 0.03 MTPA is also expected to start commercial operations in December 2021.

Commenting on the developments, Mr. Brij Bhushan Agarwal, Vice Chairman & Managing Director said, "The capacity expansion at our Sambalpur & Jamuria plants comes at an opportune time as the steel industry continues to expand and the demand for our product remains high. We are committed to our expansion plans and have already invested Rs 464 crores from the total budget of Rs 850 crores earmarked towards capital expenditure from internal accruals in Financial Year 2022. We also look forward to further expansions in our captive power projects. We are optimistic about achieving our goals and generate value for all our stakeholders."

Shares of Shyam Metalics and Energy Limited was last trading in BSE at Rs. 325.65 as compared to the previous close of Rs. 314.65. The total number of shares traded during the day was 26087 in over 879 trades.

The stock hit an intraday high of Rs. 329.00 and intraday low of 315.70. The net turnover during the day was Rs. 8406550.00.

Source : Equity Bulls

Keywords

ShyamMetalicsandEnergy CapacityExpansion SpongeIron