AM/NS India set to commission two auto steel lines at Gujarat unit

The investment in the downstream unit is around $1 billion, which is part of a $7.4 billion capital expenditure aimed at increasing the upstream capacity at Hazira to 15 mt

ArcelorMittal Nippon Steel India (AM/NS India), a joint venture between ArcelorMittal and Nippon Steel, is set to commission its 2 million tonne (mt) auto-focused cold rolling mill (CRM) in Gujarat’s Hazira from March this year.

 

The investment in the downstream unit is around $1 billion, which is part of a $7.4 billion capex aimed at taking the upstream capacity at Hazira to 15 mt.

 

Two production lines — continuous galvanizing line (CGL) and a continuous galvanizing and annealing line (CGAL) — dedicated to manufacturing advanced automotive steel products are expected to be fully operational in 2025.

 

The lines embedding the technical know-how of the parent companies are part of the upcoming CRM2 complex at Hazira.

 

 

Once operational, production from the units will substitute imports of high-end steel required by the automotive sector.

 

Currently, the auto industry is importing around 15-18 per cent of its steel requirements, Ranjan Dhar, director & vice-president — sales & marketing, AM/NS India, said.

 

He added, “The production lines will do import substitution of high-end steel products that are getting into the country. It will enable Indian automobile manufacturers to make cars in India for the export markets, including critical ones like the US and Europe.”

 

“It is in sync with Prime Minister Narendra Modi’s vision ‘Make in India, Make for the World’ as articulated at the Bharat Mobility Global Expo,” Dhar added.

 

The two units will enable the production of ArcelorMittal as well as Nippon Steel’s licensed products, with strength levels up to 1180 MPa (megapascal), in both coated and uncoated steel. 

 

The expansion aims to meet the growing demand for high-quality and value-added automotive steel in India.

 

It currently stands at 7.8 million tonnes per annum (mtpa) for flat steel and is set to grow by 6-7 per cent annually. 

 

Apart from AM/NS India, major steel suppliers to the auto sector in India are Tata Steel and JSW Steel.

 

In a statement, Dilip Oommen, chief executive officer, AM/NS India, said, “The expansion plays a key role in our strategy to strengthen the country’s steel ecosystem. It will boost global competitiveness, thereby reinforcing the ‘Atmanirbhar Bharat’ initiative.”

 

At the ongoing Bharat Mobility Global Expo 2025 in New Delhi, AM/NS India is showcasing its automotive offerings along with ArcelorMittal’s Multi Part Integration (MPI) solutions.

 

According to AM/NS India, the MPI solutions offer several key benefits. They include cost efficiency through reduced manufacturing costs, streamlined processes with multiple components integrated into a single design, and modular designs for various automotive applications.

 

These new-age solutions also feature eco-friendly production that adheres to global sustainability standards, weight reduction for improved vehicle performance, and enhanced safety with materials compliant with Bharat NCAP (BNCAP) norms, the company said.