AMNS India, a joint venture between global steel majors ArcelorMittal and Nippon Steel, currently has the capacity to produce 9 million tonne of steel each year at its plant in Hazira.
Its investments include increasing the upstream capacity of the plant in Hazira to 15 million tonne by early 2026. AMNS Luxembourg Holding, the parent company of AMNS India, recently entered into a $5-billion loan agreement with a consortium of Japanese banks to fund this expansion.
AMNS India will also invest $1 billion for downstream facilities at its plant in Hazira in Gujarat, to supply for the growing demand from automobiles.
The company is also setting up slurry pipelines to connect its mines to its beneficiation plants in Thakurani and Sagasahi and beneficiation of ore in Odisha, it shared in an update to investors post its quarterly earnings.
For the March quarter, the company’s production of crude steel rose nearly 9% sequentially to 1.76 million tonne while shipments surged by 15% quarter-on-quarter to 1.83 million tonne.
Both the production and sales were higher as compared to the previous year as well, with production up by 2% on year, and sales up by nearly 6%.AMNS India’s earnings before interest, tax, depreciation and amortization more than doubled to $341 million in the March quarter from the $162 million it made in the December quarter helped by higher sales volumes, higher prices of steel and lower costs, including that of energy. The operating profit, though, was lower as compared to the last year because of lower prices of steel this year.
Earlier this year, ArcelorMittal had said that it sees sales in India to be robust in 2023, with the apparent growth of steel consumption in the range of 6-8%. The company sees global demand, ex-China, rising 2-3% in 2023.
ArcelorMittal is also in a strategic partnership with the Greenko Group in India to develop a renewable energy project of 975 mw capacity for an investment of $600 million.