Lloyds Metals commissions new sponge iron plant, boosting capacity to 700 KTPA

Lloyds Metals and Energy Limited (LMEL) announced the successful commissioning of its 360 Kilo Tonnes Per Annum (KTPA) sponge iron plant located in Ghugus, Maharashtra, as of September 1, 2025. This project, completed in just over 18 months, marks a significant milestone in strengthening the company’s integrated value chain and enhancing operational efficiency. The first of the plant's two kilns is now operational, with production scaling up in a phased manner.

This new Ghugus unit boosts LMEL's total installed sponge iron capacity to 700 KTPA. The project, executed by Lloyds Engineering Works Limited, is strategically positioned to support the captive utilization of the company’s mined iron ore. This commissioning represents the third major facility operationalized by LMEL within the current fiscal year, following an 85 KM slurry pipeline and a 4 MTPA pellet plant.

managing director Rajesh Gupta highlighted that the timely execution reflects robust internal planning, enabling faster monetization and improved capital efficiency. This expansion is part of LMEL’s broader strategy to become one of India's most efficient and cost-effective steel producers, reinforcing its integrated growth platform.