The Company was originally promoted in the joint sector between the Kerala State Industrial Development Corporation Ltd. (KSIDC) and a private entrepreneur in 1969. SCL set up its mini steel plant in 1972 with installed capacity of 37,000 tonnes p.a.The Company commenced commercial production in September 1973.
As part of rehabilitation package, KSIDC raised its shareholding in SCL to more than 50% ad thus SCL became the subsidiary of KSIDC in 1979.In 1983 SCL undertook expansion scheme by adding the third electric arc furnace, by which the production capacity was raised to 55,000 tonnes p.a. The operation of the company then improved and SCL earned substantial profits during 1984-86.