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ArcelorMittal Nippon Steel to spend $5 billion for India expansion

ArcelorMittal Nippon Steel to spend $5 billion for India expansion

ArcelorMittal Nippon Steel to spend $5 billion for India expansion
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By CNBCTV18.com Sept 28, 2022 3:56:46 PM IST (Published)

Takahiro Mori, Executive Vice-President of Nippon Steel said that India’s demand for steel is set to outpace the rest of the world and the venture wants its share of the country’s consumption to rise to 15 percent by expanding capacity to 30 million tons by 2030.

Banking on strong consumption growth in India, ArcelorMittal-Nippon Steel India Ltd. plans to spend $5.1 billion at its Gujarat plant to boost crude steel capacity to 15 million tonnes by 2026. 

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The venture between ArcelorMittal SA and Nippon Steel Corporation currently has a capacity of 7.6 million tonnes. The company said in a presentation to its investors that it has aimed to add another one million tonnes by March 2024 by creating efficiencies at the existing plant. ArcelorMittal Nippon Steel also revealed that it received environmental clearance for the expansion this month.
Takahiro Mori, Executive Vice-President of Nippon Steel said that India’s demand for steel is set to outpace the rest of the world and the venture wants its share of the country’s consumption to rise to 15 percent by expanding capacity to 30 million tonnes by 2030.
“India has a younger demographic, and development is expected in the future,” said Mori. “We will continue securing a presence in the market to capture the expansion of demand growth.” It has started feasibility studies to add 30 million tonnes. 
The company has signed an agreement for a 24-million-tonne-a-year greenfield option in the state of Odisha and is assessing the possibility to build a 6-million-tonne plant in Paradip.
ArcelorMittal Nippon Steel also said to its investors that final approval from the authorities is awaited for the acquisition of Uttam Galva. The venture is also exploring other mergers and acquisitions.
-With inputs from Bloomberg
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