In this blog we are going to tell you about How Are Integrated Steel Plants Different From Mini Steel Plants, so read this blog carefully to get the complete information.
The iron and steel industry is one of the major industries in the world. It contributes raw materials to various other industries such as engineering, locomotives, infrastructure, defense, and others. It is a mineral-based industry as its raw materials, especially iron ore, coal, and limestone are mined. Steel is also known as the backbone of modern industries because of its capacities and functions. The iron and steel industry comprises both large integrated steel plants and mini steel plants. Besides both plants working in the steel industry, there are certain differences between them which you should know. Continue reading the article to know more about what integrated steel plants and mini steel plants are and how they differ from each other.
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What is a Mini Steel Plant?
A mini Steel plant is usually incorporated with lower investment and can manufacture specific Alloys of Steel with some process help and raw materials from other steel plants. In other words, a mini steel plant is a small plant for the production of steel and is smaller than normal steel plants in India. They are reliant on electric power. These plants use pig iron or scrap iron as their raw materials and are very much used all around the nation.
What is an Integrated Steel Plant?
An Integrated Steel plant hosts all the procedures in-house and can manufacture different types and forms of steel. Its investment is huge and performs as a large-scale production house. In other words, Integrated steel plants are large plants that deal with everything from putting together raw materials to making steel.
Main Differences between Integrated Steel Plants and Mini Steel Plants
The following are the points that make integrated steel plants different from mini steel plants:
- Type of Producer
The integrated steel plant has the primary producer that includes iron making, steel making, casting, roughing rolling or billet rolling, and product rolling while the Mini steel plant has the secondary producer that produces carbon steel and alloy steel of particular specifications.
- Size
Integrated Steel plants are large and manage everything in one complex while Mini Steel plants are smaller and have electric furnaces, used steel scrap, and sponge iron.
- Raw Material
The raw materials of integrated steel plants include iron ore, limestone, and coal or coke. On the other hand, the raw materials of mini steel plants include iron from scrap steel, recycled from used automobiles, and equipment, or byproducts of manufacturing.
- Product
Final products formed by an integrated plant are usually large structural sections, heavy plates, strips, wire rods, railway rails, and sometimes long products like bars and pipes. On the other hand, Mini plants are specialized for things like making coils of rod for wire drawing use, or in special sections for transportation and agriculture.
- Investment
In an integrated steel plant, investment is big and it works as a large-scale production house whereas mini steel plants are incorporated with lower investments.
- Number in India
There are around 5 integrated plants present while there are around 650 Mini Steel plants present in India.
- Function
Integrated steel plant work by putting the whole process together from converting the iron ore to production and manufacturing of steel and finished and semi-finished products. In contrast to this, Mini Steel plants work by using pig iron or leftovers from integrated Steel plants to form alloys.
- Necessary Condition
The necessary condition for an integrated Steel plant is that it should be located near the mining sites of iron ore, coal, and limestone otherwise the transportation cost will be so high. On the other hand, there is no such location restriction or condition for mini Steel plants.
Problems Faced by the Iron and Steel Industry
The following are some major problems that are faced by the iron and steel industry in India as mentioned below:
- Lack of technology
- Requirement of large investment capital
- Low per capita labor productivity
- The inefficiency of public sector units
- Low use of potential
- Shortage of coal
- Irregular power supply
However, besides these issues, India is the second largest steel producer in the world as of 2019.
The bottom line
Overall both integrated steel plants and mini steel plants are an important part of the iron and steel industry. But when talking about the difference between these two plants, they are different in many aspects. An Integrated Steel plant is large and covers everything in one complex while a mini steel plant is smaller and produces mild and alloy Steel of certain specifications. There are more Mini Steel plants than integrated Steel plants in India still integrated Steel plants are well known as they handle everything. We hope that you found this article helpful and that we have covered almost all the differences between integrated Steel plants and mini steel plants.
Conclusion
We Hope this blog is sufficient enough to provide the information about How Are Integrated Steel Plants Different From Mini Steel Plants. Thanks for reading this blog.