The Steel Authority of India (SAIL) has signed a joint venture agreement with Burn Standard Company (BSCL) to build a new wagon components manufacturing plant at Jellingham in West Bengal, India. About Rs.2bn ($35.97m) will be invested in the new plant, which will have an annual production capacity of 10,000 bogies and 10,000 couplers. The new facility would lead to the overall development of the region and urged the officials to complete the plant by 2013 instead of its planned completion in 2014. The annual off take from Railway will be for 5,000 units.
SAIL is on the lookout for new markets where it can refocus on opportunities to supply more value-added steel. Railways, which require stainless steel and other special grade steel items for manufacturing of various types of passenger coaches and goods wagons, as well as the cast steel frames (bogies and couplers) for these coaches, will be one such potential segment for SAIL.
According to the Vision 2020 document, the demand for wagons from Indian railways and other wagon users will increase, which will push the demand for wagons and in turn couplers, SAIL said. The SAIL-BSCL venture is expected to be able to secure a good share of the market for the new / upgraded products