Production At SAIL, Tata Steel Plants Down By 50%, Amid Lockdown: Sources
A worker handles coke falling out of the coke oven’s battery at a coke plant in the Steel Authority of India Ltd. in Odisha, India. (Photographer: Dhiraj Singh/Bloomberg)

Production At SAIL, Tata Steel Plants Down By 50%, Amid Lockdown: Sources


Facing reduction in demand due to the lockdown in the country, steel makers state-owned Steel Authority of India Ltd. and Tata Steel Ltd. have reduced their output by about 50 percent, according to sources.

SAIL and private player Tata Steel both contribute about 20 percent to India's total steel production. As per industry sources, SAIL and Tata Steel have scaled down production by about 50 percent. The companies have taken the decision because of the reduced demand in the market after the lockdown, which has impacted logistics movement, the sources 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 etc at the plants, which can not be closed, are running.

Also read: Lessons Tata Steel Learnt From Its Corus Acquisition, Or Not

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 care and maintenance mode. The company had however not provided any figures with respect to reduced production levels.

While a SAIL official confirmed reducing output by about 50 percent over phone, an e-mail query sent to Tata Steel remained unanswered. SAIL has five integrated steel plants in Odisha, Jharkhand and Chhattisgarh. Tata Steel has two plants in Odisha and Jharkhand.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.