Mumbai, Dec. 6: Essar Steel today completed the expansion of the capacity at its Hazira complex in Gujarat to 4.6 million tonnes.

The expansion was completed in 18 months at an investment of Rs 1,975 crore. According to Essar Steel, the expansion is the culmination of its strategy to be a low-cost, high-quality and value-added producer for the niche, high-end markets at home and abroad.

The company said it would now become the largest domestic producer of flat steel in the private sector, accounting for close to 23 per cent of the country’s capacity on this front.

Moreover, the share of value-added products in Essar Steel’s portfolio is also slated to rise to 75 per cent from the existing 45 per cent. A company statement said this would contribute significantly in reducing imports of critical special grades of steel meant for sophisticated applications. Essar Steel also expects a jump in exports of its products, enabling it to consolidate its position as India’s largest exporter of flat steel.

Prashant Ruia, director of Essar Group, said, “This expansion and modernisation put Essar Steel in the premium league of high-end steel producers. We are privileged to be at the core of India’s economic development at a time when the country is being recognised as one of the fastest growing economies in the world.”

The expansion entailed adding a new electric arc furnace, a third caster and allied equipment.

To meet the requirements of the expanded steel capacity, infrastructure facilities were also enhanced. This included a 500-mw captive power plant, increase in capacity of the port to 12 million tonnes and allied machinery and equipment workshops.