| (Press
Release, March 11, 2004)
Gujarat
NRE Coke Limited's second plant at Bhachau, Kandla for manufacturer
of 324000 MT per annum of Low Ash Met Coke (LAMC) is starting
production ahead of its schedule. While, the new unit consists
of 9 chimneys, the first chimney will be heated on 12th March
2004 and the entire plant will be in operation by December
2004 in phases. The company expects to get a Production of
150,000 MT from the new Plant by March 2005. The Debt Equity
has been kept at 1:1 for the total project cost of Rs.50 Crores.
"We have now perfected the art of setting us goals -
only to outperform them" said Sri Arun Kumar Jagatramka,
Managing Director "all our expansions and additions to
capacity have been achieved in record time, and this Greenfield
unit too is a move in the same direction".
When the new unit is fully commissioned, the combined production
capacity of the company will be 682000 MT per annum, and will
further strengthen the position of the company as the market
leader in the Domestic Metcoke market.
The addition of fresh capacities at this critical juncture
will add to the spectacular growth path that the company has
taken. After consolidating its scattered resources and production
capacities, and having posted impressive results in the near
past, NRE Coke, with the current additions will not only strengthen
its position as a voluminous producer, but will also reap
the full benefit of the high ruling prices of coke which have
risen dramatically from Rs.6500 per MT in October 2003 to
more than Rs.20000 per MT and add to its bottom-line.
Despite the current global shortage of coking coal, NRE Coke
has successfully contracted its full requirement of coking
coal for the current year well in time which takes care of
full production not only at its existing plant at Jamnagar
but also the new unit near Kandla. The company also gets the
benefit of long term freight agreements for coal shipments
from Australia thereby cushioning it from high volatility
in ocean freights being seen recently.
"We are very happy with the way things are progressing"
said Sri Jagatramka. "Our products have proved their
qualitative superiority in the market over the years. Today,
our dream of having capacities that match our qualitative
edge is slowly taking shape and the dream of being the biggest
and the best in our field of excellence is in the process
of taking shape. Yes, we are looking ahead, for the future
beckons".
NRE coke expects to touch the magical 1 million ton threshold
in coke capacity with another unit being set up in Karnataka
in joint venture with Kalyani Steels Ltd with annual capacity
of 324000 MT which is expected to be operational by March
2005.
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