Gujarat, India-based steelmaker Essar Steel has announced that the all-round efforts of the company in various facets of its operations like production, sales and marketing, and cost improvements have resulted in an excellent operational turnaround and resurgence of the company.
According to Essar Steel, its production has doubled since November last year, with its capacity utilization currently at 70 percent. This has resulted in a significant improvement in the EBIDTA margin which has improved to 18-20 percent from five percent in November last year. The company aims to achieve a capacity utilization of 80-85 percent in the financial year 2016-17.
Essar Steel also stated that it has completed all the upstream and downstream projects at a competitive cost to achieve 10 million mt per year and all units have become operational. The availability of gas at economic prices has enabled Essar Steel to make its gas-based direct reduced iron (DRI) units operational as well.