Arjas Steel to increase annual production capacity to 550,000 tons at an investment of over Rs 600 cr

The Andhra plant has a current capacity of 300,000 tons per year while the plant in Punjab is currently operating at the level of 100,000 tons per year, with the potential to go much higher.

Arjas Steel Private Limited (formerly known as Gerdau Steel India Pvt Limited) will invest approximately Rs 350 crore in Arjas Steel Tadipatri, in Andhra Pradesh and approximately Rs 260 crore in Arjas Modern Steel in Mandi Gobindgarh, Punjab.

“These expansions which have already started are slated to be completed in 2025. This investment will make Arjas a frontrunner in the supply chain for various critical applications in energy, automotive, railway market segments, defense as well as exports. These investments will debottleneck capacity, modernize for improved product quality and add substantial value-adding downstream facilities” said Sridhar Krishnamoorthy, ASPL Managing Director

The company has developed various Carbon, Alloy and Micro-alloy steels in profiles like Rounds, Round-cornered Squares, Hexagonal Bars and Flat Bars for critical applications in the Automotive, Energy, Defense, railways and other growing sectors of the Indian economy. The increased capacity targets to meet the rising demand from these sectors.

In Tadipatri the investments include a state-of-the-art KOCKS Sizing block from Germany which will help improve quality and throughput as well as a Garret coiler line to produce specialty steel in coil form.

Upstream in iron making and steel making, Arjas steel Tadipatri is adding new stoves and more steel refining capacity to boost output. 

Arjas Steel Tadipatri's output is expected to increase by 25-30% as a result of these investments.

In Punjab, through the Invest Punjab scheme, Arjas Modern Steel is committed to modernize and growing the output of the plant in Mandi Gobindgarh.

Over the next 2 years, these investments are for a new emission control system, improved steel making and rolling and other critical quality assurance systems. Arjas Modern Steel’s output will increase almost 60-70 percent from current levels