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AMNS India to invest $1 billion in downstream sector: Aditya Mittal

According to a statement, this was the first such meeting since Luxembourg-based ArcelorMittal and Japan's Nippon Steel jointly acquired the asset in December 2019

Aditya Mittal

Aditya Mittal

Press Trust of India New Delhi
ArcelorMittal's arm AMNS India will invest USD 1 billion in the downstream sector, including in the expansion of its specialty steel portfolio, Aditya Mittal, Chairman of the Gujarat-based steel player, said on Tuesday.
Mittal is also the CEO of parent company ArcelorMittal which holds 60 per cent equity in AMNS India.
AMNS India in Hazira is well-positioned to capture the growth opportunities presented by the domestic steel market which has the potential to grow to 300 million tonnes per annum by 2030, the company official said addressing a group of investors and analysts of ArcelorMittal.
According to a statement, this was the first such meeting since Luxembourg-based ArcelorMittal and Japan's Nippon Steel jointly acquired the asset in December 2019.
In addition to volume growth, AMNS India is focussed on leading the decarbonisation of the Indian steel industry and will increase its production of high grade speciality steels in key growth sectors such as automotive and infrastructure, aligned with India's national steel policy and key policy initiatives such as Atmanirbhar Bharat, Mittal said in a presentation to the investors and analysts.
The company's downstream strategy is focused on high-value steels, the presentation said.
"Well equipped to expand specialty steel portfolio. Downstream investment of USD 1 billion (is) ongoing," the presentation showed by Mittal said.
As per the presentation, the production capacity at Hazira plant is being ramped up to 8.6 million tonne (MT) by the end of 2024 at an estimated capex of USD 0.8 billion. Another USD 0.5 billion is being invested to set up a coke oven plant.
The current capacity is 7.6 MT. By 2026, the company aims to scale up the capacity to 15 MT.
The company has plans for a "state of the art'' downstream facility at Hazira. It anticipates the acquisition of Uttam Galva (1.2 Mtpa) (and) awaiting final approval from National Company Law Tribunal", the presentation said.
The company is also looking for merger and acquisitions (M&A) opportunities.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Sep 27 2022 | 10:17 PM IST

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