3 million tons per annum strip mill to be constructed at the Rourkela Steel Plant
August 5, 2015
Mitsubishi Corporation (MC) and Larsen & Toubro (L&T) have signed a contract with Steel Authority of India Limited (SAIL) for the construction of a large-scale steel plant in India. The contract comprises a hot strip mill with a production capacity of 3 million tons per annum to be constructed at the Rourkela Steel Plant, located in the eastern state of Odisha (Orissa). The hot strip mill is a rolling mill which processes steel slabs into hot rolled coils. The plant is scheduled to start operating from the beginning of 2018. The contract is valued at approximately 50 billion yen.
The consortium of MC and L&T will serve as contractor of the project, with MC undertaking project management, while L&T will undertake civil construction, erection, and local supply. Primetals Technologies Ltd (PT) will provide design, engineering and supply of critical mechanical equipment, while Hitachi, Ltd (Hitachi) will provide design, engineering and supply of electrical and automation systems. Overall project execution will be supported by Mitsubishi Corporation Machinery, Inc. a subsidiary of MC.
Although MC has a wealth of experience with steel plants in Asia and in Latin America, this is its first full turnkey steel plant project in India. A number of factors, however, led to a positive evaluation by SAIL. Notable among those factors is MC’s stellar reputation in executing such projects globally. The proposed technology for finishing rolling equipment, a pair cross mill with high strip shape control capability developed by PT, and Hitachi’s advanced electrical control systems for rolling mills, helped to form a winning combination. The tie-up with local partner L&T, which has vast experience in plant engineering and construction in India, was also positively evaluated.
India produced approximately 90 million tons of crude steel in 2014, and the Ministry of Steel plans to expand that to 300 million tons by 2025. A number of mega steel plants are therefore being planned for construction and MC will use the execution of this project as a platform to proactively explore opportunities for further engagement in India’s steel industry.