Liberty Steel plans to double capacity at Adhunik Metaliks in 3-4 years

Liberty Steel, part of the Sanjeev Gupta-led GFG Alliance, has plans to double the capacity at Adhunik Metaliks, the Odisha-based bankrupt steelmaker it acquired through the insolvency route in March, to one million tonne per annum (mtpa) in the next three to four years.

The company, which found its foothold in the lucrative Indian market through the acquisition, is also examining potential targets for takeover through the inorganic route as part of its India strategy, Adhunik Metaliks managing director Uday Gupta said.

“During the pandemic, we refurbished the plant and machinery which was idle for close to three years. We are starting up the plant in phases to ramp up production and hope to reach full capacity in a year,” he said. True to its commitment towards ‘greensteel’, the company will use electric arc furnaces for steelmaking backed by renewables in future, he said.

Gupta, however, did not disclose the amount that will be required to invest to double the capacity. He said it will depend on the product-mix and technology adopted to expand.

Adhunik Metaliks started the first phase of production after the takeover only last week. GFG Alliance acquired Adhunik Metaliks and its associate firm Zion Steel for around `425 crore through the insolvency route in March.

Located near Rourkela in Odisha, Adhunik has 0.5 mtpa steel-making capacity and a 34 MW captive power plant among others. It produces steel for use in the automotive, energy, engineering, and oil and gas sectors, besides catering to the commodity market.

During the operational ramp-up period starting early May, Adhunik took on 1,500 local people in permanent and contractual roles to undergo vital and extensive maintenance and repairs before formal production resumed.