Gerdau Steels rechristened Arjas Steel

Gerdau Steels rechristened Arjas Steel

Gerdau Steels India is now rechristened as Arjas Steel with the ADV Partners and affiliates taking over the Brazilian company Gerdau selling its stakes to the former

Tadipatri (Anantapur): Gerdau Steels India is now re-christened as ‘Arjas Steel’ with the ADV Partners and affiliates taking over the Brazilian company Gerdau selling its stakes to the former.

This has been announced and unveiled by the company’s Managing Director Sridhar Krishna Murthy at a glittering function in the company premises to mark the occasion here on Tuesday. Addressing the media on the occasion, Sridhar said that the company is producing several steel products and catering to myriad customers. While the steel-making capacity is to the order of 3 lakh tonnes per annum.

At present, the company is producing 2.6 lakh tonnes of steel products. Now with boosting of marketing prospects due to the arrival of Kia Motors, the plant capacity would in future be increased to 3.5 lakh tonnes. Replying to a question, Arjas MD said that the Gerdau Steels had been purchased for $ 120 million by the ADV Partners.

The establishment of Kia Motors has opened up new marketing avenues and scope for plant capacity expansion. Discussions are on with the Korean automobile major and once an agreement is signed the plan is likely to increase its steel production by another 1 lakh tonnes. Sridhar said that more jobs can be generated as and when the plant capacity is expanded.

Responding to a query on safety measures initiated in the light of past mishaps in the factory, the MD said that after the recent mishap many changes had taken place on safety front and the company is in a better position to handle exigencies and more so had taken many preventive measures. A consultant had been hired, who is constantly on the job, to prevent mishaps of any kind.

The company had launched a skill development centre to train youngsters for jobs even in Kia Motors. He said that more investments are pouring in from local banks for further expansion of the plant.

The company has 250 reliable customers. It has provided 10,000 jobs both directly and indirectly. Arjas is producing special steel products for the automobile and energy sectors.

Sridhar hopes to build the company into a centre of excellence in special steel products coupled with strong financial discipline. AP government’s Special Chief Secretary J A Chowdhary and Gopinath, Head of Procurement, Ashok Leyland spoke on the occasion.

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