Tata China is working toward expanding megnesite

04 May 2010 - Tata Refractories Ltd (TRL), a leading Indian producer of refractories, has confirmed that its Chinese subsidiary, TRL China, is working towards expanding its magnesite-based refractory unit in Bayuquan, north-east China, from 54,000 tpa to 90,000 tpa.
Vice president of engineering at TRL, PK Patel, said: "In India, refractory demand is growing by some 17% per year. Production at the plant will supply mainly the Indian market, and some 10% will go to the domestic Chinese market."
TRL China is 92% owned by TRL, and the remaining 8% is owned by a Chinese joint venture partner.
The expansion, which will cost an estimated Rs 500m. ($11m.), is expected to be completed by December 2010.
According to the World Steel Association, India's steel demand maintained stable growth during the global economic crisis. Demand is expected to grow by 13.9% in 2010 and 13.7% in 2011, after 7.7% in 2009. In 2011, India's steel use will reach 71.6m. tonnes.
TRL is currently exploring the possibility of acquiring magnesite mines in China, "We are in search of owning some mines in China to supply demand for raw materials in India." he said.
For now, output from TRL supplies consumers in India. While the company would like to supply Tata's operations in the UK, it has so far been unable to do so as a result of antidumping duties in places.
"There is a problem of antidumping duties but we are looking into the possibility of supplying operations outside India." said Patel.
It is understood that TRL is also in the process of establishing a refractory unit in Vishakhapatnam, Andhra Pradesh, to produce mainly synthetic raw materials for refractories and eventually high alumina refractories.
To meet future refractory raw material needs in India, Patel said the company also has plans to acquire dolomite and quartzite production facilities in India. "This is a plan", he said.