ArcelorMittal-Nippon Steel (AM/NS) India on Wednesday vowed to become a “new type of steel company” using its parents’ unmatched technological prowess, innovation and Research and development (R&D) capabilities, as it marked its first anniversary.
“And that is undoubtedly what the vision is. Covid-19 has in no way dampened the long-term potential we see for AM/NS India. India is a growing, resilient economy and it will bounce back — of this, I have no doubt. Over the last year I have become even more convinced about the potential,” AM/NS India chairman Aditya Mittal said in a note to the company’s workmen.
Stating that the scale is important and, on that company’s, long-term production intentions to reach between 12 and 15 million tonnes (MT) of annual production still stands, Mittal said AM/NS India will stand out in India by improving capacity to produce higher-added value auto products and introducing other high-value products from the ArcelorMittal range. Downstream capabilities will also be developed.
A 60:40 joint venture (JV) between world’s largest steelmaker ArcelorMittal and Japan’s Nippon Steel Corporation, AM/NS India had acquired Essar Steel’s Hazira plant for Rs 42,785 crore last December through the insolvency route.
“In the short-term, the focus will be on debottlenecking our existing operations so we can increase annual production to around 8.5 MT. We are currently working on further growing our production, and I expect we will be able to provide some further details on how we plan to do this next year,” he said.
As FE reported recently, AM/NS India has approached the government, seeking specific policy support to an ambitious plan to expand its steel-making capacity in India with “significant investments”, according to a senior company executive. The company is primarily evaluating the option of a large green-field facility in eastern India, but may also opt for further expansion through the inorganic route.
Senior representatives of AM/NS India made a presentation to Union steel minister Dharmendra Pradhan on the firm’s likely investment proposals in the country. They also explained to the minister the support that the company would be required, from the Centre and the concerned state governments for the plans to materialise.
Mittal said though Covid-19 sprang up unprepared challenges, AM/NS India’s operational and financial performance had been strong.