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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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