Mesco Steel dismisses Kalinganagar plant closure rumours

Bhubaneswar, Aug 19: Strongly dismissing rumours on
closure of its steel plant at Kalinganagar as frivolous and baseless, Mesco
Steel on Friday clarified that it was committed to continue contributing to the
industrial saga of Odisha.
Taking pride in its two steel plants in
Kalinganagar, Mesco in a statement said, the company had pioneered the
industrial revolution in the early 1990s in Odisha and has over the years
brought immense glory to the state, and shall continue to do so forever.
“As announced earlier, we are well on our way to
expansion of the plant. Major orders have been placed for expansion, and
designing of the plant is well underway targeted to full capacity production by
the end of 2017. We are also awaiting environmental clearance for the same.
Currently Mesco produces pig iron which is not viable even though we have been
running this plant for past 12 years. Therefore, there is a need for producing
value added products for which expansion is required. It does not make sense to
lose earned money in producing a product which incurs losses for you,” the
statement said.
It stated that “We wish to clarify that mines bought
for Mesco are not captive. The present mine is a standalone and is allowed to
trade. Besides, it is also supplying raw materials to the Maithaan plant. The
captive mine is not yet assigned and as and when we get it we shall utilize it
for the present plant.”
“We are a debt free company. Our commitment to
Odisha is complete and any effort to suspect our intent or business ethics is a
handiwork of a corrupted mindset. We condemn it in strongest possible terms,”
added the spokesperson,” it added.

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