AM/NS India kicks off Rs 60,000-crore Gujarat's Hazira plant expansion

Aditya Mittal says will make products never made before in India

ArcelorMittal Nippon Steel India (AM/NS India) on Friday kicked off a Rs 60,000-crore project expansion at Gujarat’s Hazira and indicated further investment in the future.

Addressing the ground-breaking ceremony, ArcelorMittal Chief Executive Officer and AM/NS India Chairman Aditya Mittal said: “We have invested almost Rs 90,000 crore and have made tremendous progress across many dimensions ensuring the facility is world class, operating safely at full capacity and producing even more quality products.”

The major expansion comes almost three years after global steelmakers — ArcelorMittal and Nippon Steel – jointly acquired Essar Steel (renamed AM/NS India) under India’s insolvency law. ArcelorMittal has a 60 per cent equity interest in the venture.

Mittal said the company intends to invest a further Rs 60,000 crore to grow the capacity from 9 million tonnes (mt) to 15 mt and produce the world’s most technologically advanced products. “We are bringing technology in steelmaking that has not existed in India. We are going to make products in India that have never been made in the country.”

Citing an example of high quality steel, Mittal said, “The first bullet train is expected to run on a 50-km section between Surat and Bilimora in 2026 and our steel will be on that train. This is a great example of how we will be contributing to vital government initiatives such as Aatmanirbhar Bharat.”

Mittal also asserted the need to decarbonize and said: “We very much aim to lead the way in this process.”

ArcelorMittal Executive Chairman Lakshmi Mittal lauded Gujarat and said it had always been the best state for business men. The new incentive scheme of the Gujarat government would lend support to the Hazira expansion project, Mittal said. The Rs 60,000-crore investment was just for this phase, he said: “Going forward, there are plans for big investment.” 

Prime Minister Narendra Modi, who addressed virtually the ground-breaking ceremony for the expansion project, said a totally new technology was coming to India, which would be a huge help in the electric vehicle, automobile, and other manufacturing sectors.

“I am sure that this project of ArcelorMittal Nippon Steel India will prove to be a milestone in the vision of Make in India. This will give new strength to our efforts for a developed India and self-reliant India in the steel sector,” the PM said.

Several top officials of Nippon Steel joined the event virtually. Eiji Hashimoto, representative director and president of Nippon Steel Corporation, said Nippon Steel was committed to making great contributions to the growth of India, through development of AM/NS India.