ArcelorMittal Nippon Steel (AM/NS) is planning to double pellet capacity at its Hazira plant to 20mn mt, the company said during an e-conclave organized by the Bengal Chamber of Commerce & Industry, according to media reports.
The plant’s annual steel production capacity is 8.3mn mt and is operating at 100pc capacity.
The company said that it would like to first expand capacity at Hazira amid expectations of strengthening steel industry in India and then look for opportunities elsewhere.
The company had acquired Essar Steel’s 9.6mn mt Hazira plant in December 2019.
Steel firms affirm bullish demand
During the e-conclave, other steel companies also affirmed that recovery has been sharp after the economy opened up post-COVID-19-induced lockdown and restrictions.
Steel Authority of India Limited (SAIL) said that there has been a V-shaped recovery in steel demand as activities have been restored post-lockdown. Prices that have surpassed peak levels of 2018.
The company added that due to the increase in demand in the domestic market, steel firms have largely reduced exports. SAIL chairman Anil Chaudhary said that the third quarter of the fiscal year (Q3 FY21) will also be good, given the good market conditions.
During the conclave, Vedanta Electrosteel CEO Pankaj Malhan said he is hoping that present capacity utilization levels are sustain.