RESOURCE-RICH Salem district has been a major beneficiary of the process of industrialisation that is sweeping Tamil Nadu. The district boasts many chemical and magnesite industries. The sago and textile industries dot the landscape in the Attur and Mallur blocks. The making of silver anklets is an important cottage industry in Salem.
The district is, however, more well known for the Salem Steel Plant (SSP). The SSP, which is all set to celebrate its golden jubilee (1959-2009), is poised for expansion at a cost of Rs.1.553 crore. The plant, which posted a string of unimpressive performances in the past, has turned round in a major way to stage its best performance in 2007-08. It outperformed itself in production and sales.
The plant has achieved a record capacity utilisation of 132 per cent with a high turnover of Rs.1,374.27 crore. It has achieved the highest-ever production of salable steel (2,30,732 tonnes), registering a growth of 26 per cent, and the highest-ever sales (2,24,524 tonnes), registering a growth of 13 per cent and a net profit of Rs.102.74 crore.
B.B. Singh, the SSPs Executive Director, said: No doubt market dynamics play a key role in influencing the production, sales and profitability, but the credit goes to the committed teamwork of the Salem Steel Collective. As a team they understand that in order to excel they need to update their competence and work practices in the changing business environment. The plant is set for further expansion with the implementation of the steel melting shop project and the upgradation of continuous casting facilities to produce 1,80,000 tonnes of stainless steel slabs.
The expansion of the cold rolling mill complex will enhance its capacity from 65,000 tonnes to 1,46,000 tonnes a year. A roll grinding facility is being provided in the hot rolling mill to increase the production to 3,70,000 tonnes a year.
The brownfield expansion project, involving excavation, concretisation and structural work of a high magnitude, is progressing on schedule after receiving environmental clearance in April. B.B. Singh is confident of completing the project by March 2010. Steel Authority of India Limiteds initiative to establish a Special Economic Zone on the SSP premises is expected to attract investments from stainless tube manufacturers, the dairy sector, kitchenware manufacturers and special steel producers.
The SSPs initiative under its corporate social responsibility (CSR) is to deliver basic amenities to peripheral villages and provide skill development to members of the weaker sections of society.
Under a unique communication exercise called Meet, Think, Achieve, employees from shop floor to top management levels hold discussions every month and execute works that will take the plant to much greater heights. We strongly believe in inclusive growth, B.B. Singh said.
R. IlangovanCOMMents
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