ArcelorMittal-Nippon Set to Boost Hazira Plant Capacity by 6MT
ArcelorMittal Nippon Steel India is ramping up its steel production capacity in response to rising demand from the infrastructure and automobile sectors. The joint venture is enhancing output at its Hazira plant through debottlenecking and plans to boost the plant's capacity from 9 million tonnes (MT) to 15MT. Additionally, AM/NS India is seeking a $1 billion loan to support its growth initiatives, with a long-term goal of expanding capacity to 40MT by 2035.
ArcelorMittal chairman Lakshmi Mittal announced in January that the JV will construct the world’s largest single-location integrated steel plant in Hazira, Gujarat, which will have a capacity of 24MT of crude steel by 2029. In December of the previous year, AM/NS India signed a ₹1.14 lakh crore agreement with the Gujarat government for a green hydrogen project, an integrated steel plant, and the expansion of its existing manufacturing capacity. Additionally, the company signed a Memorandum of Understanding (MoU) worth ₹16,000 crore with the state government for a ship-building and repair facility in Surat.
Recently, AM/NS India acquired two companies to enhance its production capabilities. In April, it received approval from the NCLT to acquire Indian Steel Corporation, which has a production capacity of 6 lakh tonnes per year and specializes in cold-rolled, galvanized, and non-ferrous steel products. In 2022, the company acquired the Uttam Galva plant, which has a capacity of 1.2MT and focuses on cold-rolled, non-ferrous, and galvanized steel.
AM/NS India emphasizes value-added products and import substitution, aiming to produce speciality steel varieties offered globally. The JV, in which ArcelorMittal holds a 60 percent stake, took over Essar Steel in a ₹42,000 crore deal in 2019. In January-March 2024, AM/NS India produced 2MT of crude steel, nearing its annual capacity of 8.6MT, and achieved record steel shipments of 2MT, a 7.9 percent increase from the previous quarter. Despite higher shipments, EBITDA for the quarter declined by 37.5 percent to $312 million due to a negative price-cost effect from natural gas hedges.