Will be forced to shut plant if things don't change: JSW Steel

BANGALORE: JSW Steel on Wednesday said the company would be forced to shut down its 10 million tonnes per annum (MTPA) Vijayanagar plant in the Karnataka if the severe shortage of iron ore persisted.

"We are operating our plant hand-to-mouth... on whatever comes on a daily basis from Orissa and Jharkhand. That won't work," JSW Steel Vice Chairman and Managing Director Sajjan Jindal told reporters here.

The company said earlier this week it's operating at 30 per cent of its production capacity.

Jindal said as of now he was optimistic that the company would be able to operate but at the same time added, "If things do not improve and if things continue (the way they are), we will be forced to take a shut-down".

Asked about the impact on profit margin of JSW Steel following production cut in the Vijayanagar plant, Jindal said, "...right now, it's not the issue of margins, it's about the issue of survival".

Aleem ahmad
pgdm 3rd