Welcast Steels to Shut Old Bengaluru Plant Due to High Costs, Outdated Technology

AIA Engineering Ltd. said its listed subsidiary, Welcast Steels Ltd., has approved the permanent closure of its old manufacturing facility in Bengaluru. The plant, which uses outdated technology, has been facing high production costs and unviable operations, the company said in an exchange filing.

It said modernising the entire unit was not feasible due to high investment needs and space constraints. The unit has also seen a steady decline in capacity utilisation over the years. The shutdown will not impact operations as the company has sufficient surplus capacity to meet its requirements, AIA Engineering added.