Uttam Galva, the leading steel manufacturer, which is presently going slow on expanding steel capacity considering the economic situation, has plans to spend Rs 400 crore in enhancing capacity of its service centre and adding new product mix over the next one year.

The company intends to fund the investment, largely through a mix of internal accruals and debt.

Presently, company's steel service centre has a capacity of 20,000 tonne. The facility is situated near its plant in Khopoli, Maharashtra.

Currently, Uttam Galva is a secondary steel producer, which makes cold rolled as well as galvanised steel. The cold rolled sheets are used by automotive sector, while galvanised steel mainly goes into construction. The company has installed capacity of 1 million tonne of cold rolled and galvanised steel at Khopoli, Maharashtra.

Apart from latest development, the company is also scouting opportunities for setting up second captive power plant in the region.

The company is presently in the process of installing a 60 MW captive power plant near its steel plant at Khopoli, which is expected to be operational by March next year.

According to an estimate, the setup of under construction power plant will cost Rs 300 crore to the company.

The company is aiming to achieve a steel production of 800,000 tonne by this fiscal. Last year, the company had produced 600,000 tonne of steel.