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ArcelorMittal Nippon Steel draws five million tonne expansion

Wednesday, 09 Jun 2021
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ArcelorMittal Nippon Steel India is making plans to increase its capacity by five million tonne in the next three years while laying building blocks for the phase after. The groundbreaking for the expansion to 14 million tonne was expected in 2021.

In the next phase, the company will take it up to 18 million tonne. The two phases of expansion at Hazira, Gujarat, along with downstream, are expected to cost about Rs 50,000 crore. Hazira has a capacity of about nine million tonne.

For the expansion at Hazira from nine to 14 million tonne, AM/NS India has land. Acquisition of land for Phase-II is underway.

The logistics will have to be in place for Phase-II. That will entail enhancing port facilities, getting the railway line into the plant and improving road logistics.

Phase-I will be completed in three years. For Phase-II, AM/NS India has an option of taking up Hazira or starting construction of a new plant in Odisha.

In March 2021, AM/NS India had signed an MoU for 12 million tonne integrated steel plant at an investment of Rs 50,000 crore. Even as the major growth plans are being charted, an investment of Rs 14,500 crore is underway at Hazira and Odisha.

Growth plans will also entail inorganic opportunities. AM/NS India has submitted an expression of interest for Neelachal Ispat Nigam (NINL) which is being privatised by the government.


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