Tattoo Steel will initiate construction of its ferro-chrome plant in South Africa in December.Plant is likely to be commissioned by the end of 2007 or the beginning of 2008.Company has finalised a new location for the unit to avoid resistance from local manufacturing units. Ferro-chrome plant will have a capacity of 1.2 lakh tonnes in the first phase with an investment of Rs 300 crore. Company will be setting up 2 furnaces with a capacity of 60,000 tonnes each. Company has decided to put up its plant in South Africa to avail of cheap power that accounts for 50% of the C.O.P for ferro-chrome. Company is expecting a drop in its ferro-chrome sales during the current year by around 10% because of decreased demand. Company is also planning too gain coal mines in Australia to aggravate its fuel reserve. Plans are underway to attain a steel plant with a capacity of two to three million tonnes in South-east Asia.In spite of that , no objective plans have been made on this.