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A Hyundai group team visited the Rashtriya Ispat Nigam Ltd. (RINL) steel mill in Visakhapatnam to investigate the possibility of creating a steel mill in partnership with the large public sector steel group.
A delegation of Hyundai representatives led by the South Korean ambbadador, was on the site of the factory last month. These are government-to-government negotiations, said RINL President and CEO, P.K Rath.
The team visited the RINL site on October 23rd. RINL has a surplus land of 3,000 acres. The total land available with RINL is 20,000 acres, which includes the area of the township.
Rath said that it was a preliminary visit and that the team would share his comments with the department. However, if the project materializes, it would likely focus on flat steel, with a focus on self-nuanced steel. RINL is a manufacturer of long products. The size of the plant could be 3 million tons. For RINL, capital would be its principal capital.
In India, Hyundai has a service center for steel, under the responsibility of Hyundai Steel India Private Limited (HSIPL). It processes and markets hot and cold rolled coils to meet the steel needs of Hyundai Motors India Limited (HMIL) and its auxiliaries.
HSIPL was incorporated as a wholly owned subsidiary of Hyundai Hysco Company Limited, Republic of Korea. which merged with Hyundai Steel Company in 2015. Hyundai Steel has an annual capacity of 12 million tonnes and is specialized in leading automotive products.
If Hyundai decides to create a joint venture with RINL, the government could have
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It has entered into a long-term contract with the NMDC for iron ore, but has short-term contracts with non-NMDC actors. If the price is competitive, we could even look for long-term contracts with non-NMDC players, Rath said.
"RINL decided to diversify the risk of satisfying all of NMDC's iron ore requirements. We have recently obtained a third of the needs from sources other than the NMDC, "he said. Rath was speaking on the sidelines of a conference on steel and metallurgy in the integrated and secondary steel sector.
RINL is strengthening its capabilities. Next year, it will have a capacity of 7.3 million tons and is expected to finish the current year with 6.3 million tons.
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The increase from 3 million tons to 3, 3 million tonnes cost RINL 120 billion, while an additional one million tonnes added through debottlenecking was done at a cost of 40 billion rupees, sources said.
There is a project to increase production capacity to 11-12 million tons, but no deadline is set. The priority would be to stabilize the current capacity. Moreover, if the discussions with Hyundai progressed, then he would take a look at it.
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