Production at SAIL, Tata Steel plants down by 50%

NEW DELHI: Facing reduction in demand due to the lockdown in the country, steel makers SAIL and Tata Steel have reduced their output by about 50%, according to people in the know of the matter. State-owned Steel Authority of India Ltd (SAIL) and private player Tata Steel both contribute about 20% to India’s total steel production.

As per industry people, SAIL and Tata Steel have scaled down production by about 50%.

The companies have taken the decision because of the reduced demand in the market after the lockdown, which has impacted logistics movement, the people said adding that buyers are also reluctant in placing orders.

Most of the staff of the companies are working from home and only important sites like blast furnaces and coke oven batteries at the plants, which cannot be closed, are running.

Tata Steel had earlier said as the outbreak of covid-19 has impacted its business and operations, the company’s integrated steel facilities in Jamshedpur and Kalinganagar and subsidiaries Tata Steel BSL and Tata Steel Long Products have started reducing production levels while operations in the downstream facilities have been suspended and put on maintenance mode.

While a SAIL official confirmed reducing output by about 50% over phone, a query sent to Tata Steel remained unanswered.

Meanwhile, as the 21-day lockdown period is nearing end, private steel maker JSW Steel has started preparing to scale up its production. While releasing the production figures for the financial year 2019-20 on Tuesday, JSW Steel announced “making preparations to recommence operations at all locations on lifting of lockdown in the next few days.”