Shyam Metalics announces new stainless steel facility in expansion push
In a significant development within India’s steel industry, Shyam Metalics and Energy Ltd, a prominent metals manufacturing company, has announced the establishment of a new Stainless Steel Hot Rolled Coils (HRC) facility. This move is part of the company’s strategic expansion plan, previously approved by its Board of Directors in July 2023, aimed at positioning Shyam Metalics for accelerated growth in the Stainless Steel market.
The new facility, located at the company’s existing plant in Sambalpur, Odisha, is set to specialize in the production of 200 and 400 series stainless steel hot rolled coils. With a production capacity of 0.3 Million Metric Tons Per Annum (MTPA), the plant will utilize captive raw materials such as direct-reduced iron (DRI), power, and ferroalloys. This approach ensures a reliable and efficient supply chain while maintaining high quality standards throughout the manufacturing process.
In addition to the stainless steel coils facility, Shyam Metalics is expanding its footprint in the long products sector. The company has applied for the acquisition of a 20-acre land parcel at the newly acquired Mittal Corp., which is now merged with its wholly owned subsidiary, Shyam Sel and Power Limited. This expansion will include establishing a Stainless Steel bright bars capacity of 25,000 Metric Tons Per Annum (MTPA) and an SS wires division with a capacity of 18,000 MTPA.
The estimated capital outlay for this expansive project ranges between INR 650 to 750 crores, with the project expected to be commissioned by the middle of the Fiscal Year 2026-27. These ventures are anticipated to create approximately 1500 new employment opportunities, demonstrating Shyam Metalics’ commitment to innovation, growth, and an integrated supply chain.
The expansion into stainless steel flat products is poised to support the growth of critical sectors in India, including automotive, construction, infrastructure, and consumer goods. By supplying high-quality stainless steel products, Shyam Metalics aims to contribute significantly to the nation’s economic growth and industrial landscape.
“We are excited about the prospects that stainless steel brings to Shyam Metalics,” said Sanjay Agarwal, Joint Managing Director. Dr. Deepak Kumar Gaur, Chief Operating Officer, added, “By diversifying into flat stainless steel products, we will be able to drive growth in important industries. Our goal is to have an impact on India’s industrial landscape going forward.”
This strategic expansion by Shyam Metalics is a testament to the company’s forward-thinking approach and its commitment to leveraging opportunities within the stainless steel sector. It highlights the importance of innovation and sustainability in driving industrial growth and underscores the potential for significant economic contributions through strategic investments in manufacturing capabilities.