SAIL floats new subsidiary for Burn Standard’s refractory unit

Steel Authority of India Ltd (SAIL) has converted the Salem-based refractory unit of Burns Standard Company Ltd, into a newly-formed subsidiary, SAIL Refractory Company Ltd (SRCL).

Burn Standard's refractory unit has been in the process of being transferred to SAIL since June last year after the government approved a financial restructuring of BSCL. Subsequently in August, the SRCL was incorporated in Coimbatore to facilitate the transfer, a SAIL statement said.

SAIL said with rising demand for refractory material for ongoing and future expansion, the merger of BSCL refractory is of immense strategic advantage for the steelmaker.

Refractory material is a critical input required for iron and steel plants based on the basic oxygen furnace route.

SAIL's plants at Bokaro, Bhilai and Rourkela currently source refractory from the BSCL unit in Salem, which produces basic grade refractories from its captive raw magnesite mines.

SAIL has already initiated action for deploying manpower and has undertaken studies for capital expenditure plans for installation of tunnel kiln, mixing machine at the BSCL's refractory unit.

It has also initiated a central procurement system for raw material for the Salem refractory unit.