Steel baron Lakshmi Mittal's global giant Arcelor Mittal is planning to advance the construction at its 10 million tonnes (MT) Orissa plant and hopes to begin initial construction by mid-2008, as against the earlier date of 2009.
The world's largest steel maker is also eyeing a significant cost saving by leveraging its technical expertise gained from the merger of Mittal Steel Company with Arcelor last year, company officials said.
Arcelor Mittal is building two greenfield projects at Jharkhand and Orissa. The first phase of Arcelor Mittal's plant in Orissa, with a capacity of six million tonnes, is likely to be commissioned by 2011.
The company has appointed Dastur & Co to carry out a detailed project report and environment management plan for the two sites, which are currently underway. Chief Executive Officer of Mittal Steel India Ltd, Sanak Mishra, said that major construction work in the site will be taken up in 2009 and the company has finalised the product mix of the proposed plant for both long and flat products.
"We have conducted a survey on what will be the demand for the next 10 years," Mishra said but did not elaborate. For the 12 MT Jharkhand plant, Mishra said that the company had shortlisted two sites -- Torpa and Saraikela. Mishra was in Kolkata on Tuesday to attend the annual general meeting of the Indian Institute of Metals.
Mishra also maintained that after the acquisition of French steel giant Arcelor, Mittal Steel has gained immensely in terms of technical knowledge, which is likely to come in handy when construction of the plant begins in 2008. He, however, did not divulge how much the company would save in the process.