ArcelorMittal Nippon Steel India has ambitious plans for its steel business in India. The steel maker is all set to increase its capacity by five million tonnes per annum in the next three years while laying building blocks for the phase after, reports Business Standard. Dilip Oommen chief executive officer ArcelorMittal Nippon Steel India (AM/NS India), said the groundbreaking for the expansion to 14 million tonnes was expected this year.
“In the next phase, we will take it up to 18 million tonnes,” he added. The two phases of expansion at Hazira, Gujarat, along with downstream, are expected to cost about Rs 50,000 crore. Hazira has a capacity of about 9 million tonnes. “We have made very good progress with the Gujarat government,” said Oommen.
The first phase would be completed in three years. For the second phase, AM/NS India has an option of taking up Hazira or starting construction of a new plant in Odisha. In March this year, AM/NS India had signed an MoU for a 12-million tonneintegrated steel plant at an investment of Rs 50,000 crore, in the presence of ArcelorMittal executive chairman Lakshmi Mittal and Odisha Chief Minister Naveen Patnaik. In Odisha, the company has plans to set up a 12 million tonne plant.
Even as the major growth plans are being charted, an investment of Rs 14,500 crore is underway at Hazira and Odisha. The company’s growth plans also include inorganic opportunities. AM/NS India has submitted an expression of interest for Neelachal Ispat Nigam Ltd (NINL), which is being privatized by the government.
The joint venture of world’s leading steel companies – ArcelorMittal and Nippon Steel – is betting big on India. The companies jointly acquired Essar Steel under the insolvency code for Rs 42,000 crore in 2019.
Last week, AM Mining India’s resolution plan for Uttam Galva Steels – a downstream unit – was approved by the committee of creditors and the resolution plan has been filed with the National Company Law Tribunal (NCLT).
The past year has worked well for steel companies as demand improved and prices surged. All major domestic steel producers are restarting expansion plans. By FY24, 29 million tonnes of additional capacity is expected to go onstream, excluding AM/NS India’s expansion.