ArcelorMittal Nippon Steel India has invested nearly Rs 1,000 crore in its Gujarat plant to set up a production line for Magnelis, a global product from ArcelorMittal’s stable, as the firm moves to capture over 50 per cent domestic market share for steel supplies to solar projects.
Apart from solar projects, other end-use sectors include road infrastructure (crash barriers), agriculture infrastructure (grain silos, farm equipment) and construction (pre-engineered building structures).
Magnelis is a flat carbon steel with zinc-aluminium-magnesium alloy coating on both the sides.
The production line -- set up at ArcelorMittal Nippon Steel India’s (AM/NS India) plant at Hazira in Gujarat -- has a capacity to churn out 500,000 tonnes per annum.
According to the joint venture between global steelmakers, ArcelorMittal and Nippon Steel, Magnelis’ “corrosion resistance and self-healing” properties make it ideal for use in solar projects.
AM/NS India said that it is already in advanced discussions to supply Magnelis to key players in India’s renewable energy and infrastructure sectors, including Adani Green Energy, Reliance Industries and NTPC.
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Previously, this high-end value-added steel was imported mainly from Korea, Japan, and China, often taking months for delivery, it added.
India is the world’s second biggest crude steel producer. But it turned net importer of steel in FY24.
Focus on value-added products has been a key priority for major domestic steel companies.
Ranjan Dhar, director and vice president of sales & marketing, AM/NS India, said, about 60-65 per cent of the joint venture’s portfolio was focused on value-added products. “Even as we expand, the share will remain the same.”
AM/NS India is investing Rs 60,000 crore in expanding capacity from 9 million ton (mt) to 15 mt. The expansion is expected to be completed by early 2026.
On the value-added front, AM/NS India will also come with a 2 mt auto-focused cold rolling mill at Hazira next year.
Dhar said the focus on value-added products was not just on account of margins. “We want to bring in high-end products because the demand pattern in India is shifting fast, whether it’s automobiles or white goods. We need steel products that are globally benchmarked.”
He also said that AM/NS was constantly in discussion with stakeholders in the market for inputs.
“The entire gamut of products is available in ArcelorMittal and Nippon Steel. We are drawing from there according to India’s requirement,” Dhar said.
In a statement on Magnelis launch, Dilip Oommen, CEO, AM/NS India, said, it fulfils the nation’s growing demand for high-performance steel while contributing to the vision of Atmanirbhar Bharat.