Steel Authority of India today took over the Salem refractory unit of Burn Standrad & Co, an ailing public sector unit, for a token consideration of Re 1.
"SAIL today signed a deed of transfer with Burn Standard & Co (BSCL) for the transfer of BSCL's refractory unit at Salem to the newly formed subsidiary of SAIL, namely SAIL Refractory Company Limited (SRCL)," the steel maker said in a statement. The deed was signed by BSCL Managing Director Mr. D. Marandi and SRCL Chairman Mr. S. Hanumantha Rao in the presence of Member of Parliament & Chairman of the Parliamentary Standing Committee on Industry Shri Tiruchi Siva, and other distinguished members. Highlighting the crucial importance of refractory material in iron & steel production, SAIL Chairman Shri Verma termed the transfer as "an enduring and mutually beneficial move" for both the companies.
The process of transfer of BSCL's Salem Refractory Unit as a subsidiary of SAIL was initiated on 10th June 2010. "SAIL has already initiated action towards manpower deployment and undertaken studies for capex plans for installation of tunnel kiln, mixing machine at the newly acquired refractory unit," the statement said. A previously declared non-operational shaft kiln has also been brought under operation. Action is also being taken to arrange raw material for the Salem Refractory Unit through SAIL's central procurement system as in the case of SAIL Refractory Unit and other plants.
Though not a raw material but Refractory is an essential element required in the process of iron and steel manufacturing. SAIL (Steel Authority of India) plants at Bokaro, Bhilai and Rourkela have been sourcing refractory materials from BSCL's Salem refractory plant, which produces basic grade refractories using raw materials from its captive mine at Salem itself.Related Articles
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