Lloyds Metals & Energy (LMEL) has commissioned a new sponge iron plant with a capacity of 360,000 tonnes per annum (360 KTPA) at Ghugus in Maharashtra. The facility marks a major step in the company’s expansion strategy and is set to strengthen the regional supply chain for raw materials essential to the steel industry.
The plant is expected to play a crucial role in enhancing LMEL’s production capabilities, aligning with the company’s long-term vision of becoming a leading integrated steel producer. By boosting sponge iron output, LMEL will be able to support downstream operations more effectively, ensuring a stable and reliable supply for various segments within the steel value chain.
Industry experts note that sponge iron serves as a vital intermediate material for steel production, particularly for electric arc and induction furnaces. The commissioning of the Ghugus plant is therefore viewed as a timely development, given the steady rise in domestic steel demand driven by infrastructure, construction, and manufacturing sectors.
LMEL has emphasised that the facility incorporates modern technology designed to optimise efficiency and reduce environmental impact. This reflects the broader trend in the Indian steel industry, where producers are increasingly focused on adopting sustainable practices while meeting growth targets.
The addition of the new plant is also expected to generate economic benefits for the local region, including employment opportunities and enhanced support for allied industries. By reinforcing its raw material base, LMEL is positioning itself to capture a greater share of the growing steel market, both domestically and internationally.
With this commissioning, the company has underlined its commitment to capacity expansion, operational resilience, and value creation across the steel supply chain.
