Home / Companies / News /  Arcelor-Nippon to invest  1  trillion  in India over 10 years

MUMBAI : ArcelorMittal and Nippon Steel Corp.’s joint venture steel company in India plans to invest about 1 trillion over 10 years to expand its operations in the country, a senior executive said.

ArcelorMittal Nippon Steel India Ltd (AMNS India) is owned 60% by the world’s biggest steelmaker and the rest by Japan’s Nippon Steel.

ArcelorMittal acquired Essar Steel India Ltd in December 2019 for 42,000 crore in one of the largest stressed-asset deals in the country. It then tied up with Nippon Steel, the world’s third-largest steel producer. An integrated flat steel producer, AMNS India is the top steel producer in western India, with its main facility at Hazira, Gujarat.

“The expansion plans are progressing well. In Hazira, we plan to take the capacity to 18 million tonnes (mt). And in Odisha, we are looking at setting up an additional 12 mt between Paradeep and Kendrapara. Wherever we can get the clearances earlier, we will start the process of building an integrated steel plant," Dilip Oommen, chief executive of AMNS India, said in an interview.

The company has signed an initial pact with the Odisha government to build a 12 mt steel mill.

“We are investing upwards of 50,000 crore in Hazira and a similar figure in Odisha. All these investments will indeed support India’s ambition of growing the national steelmaking capacity to 300 mt," Oommen said.

India’s current capacity is 143.91 mt, and ramping it up is seen as important to plans for self-sufficiency.

Steel demand in the country is set to increase amid a massive push by the government to build infrastructure, including new roads, airports and railway stations.

AMNS India is also diversifying into renewable energy, including solar and hybrid power, as part of its sustainability efforts. “Our vision is very clear that we need to set up renewable energy business. We are in discussion with the government to procure land," Oommen said.

Renewable energy is a key component of the company’s power portfolio in its bid to produce greener steel. This also involves raising energy efficiency, cutting energy consumption and reducing the energy intensity significantly through improved operational efficiency and reusing and recycling by-products of steel.

Oommen said AMNS India reduced its CO2 emissions per tonne by 35% since 2015.

“We will continue to work hard and draw on the best of technologies that are available in the world to further improve in this."

The company is also keen on having its own logistics support by way of jetties.

“The investment for steel expansion in Hazira will be dependent on the logistics. We have two jetties right now, which we aim to upgrade and modernize to support the port logistics. For Odisha, we are looking at building our own jetties. We are building one in Paradeep and one in Kendrapara," Oommen said.

The company already has a presence in the power sector through the acquisition of Bhander power plant at Hazira, Gujarat, which was acquired in March 2020 from Edelweiss Asset Reconstruction Co. Bhander is a natural gas-based thermal plant with an installed capacity of 500 megawatts and will be captive to AMNS India’s operations at Hazira. This January, it acquired Essar Power Odisha, another captive power plant of Essar Steel.

To secure its raw material needs, the company plans to participate in mine auctions. It already has two iron ore mines, Thakurani and Sagasahi in Odisha, to meet its immediate needs. “But at the same time, we are participating in the auctions to ensure that we further securitize our raw material but obviously, taking the mines at the right price and not at a premium. We have seen that in the past, there are merchant miners and others who have taken mines and found it difficult to run operations because of the high premium," he said.

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