Indo-Japanese steel JV, ArcelorMittal/ Nippon Steel (AMNS), plans to increase its production to 23mn mt per year over the next 10 years.
The company currently has operations in Gujarat and Odisha, with an annual crude steel capacity of 9mn mt. It sees Indian steel demand rising to 230mn mt by 2030 and will expand production to hold at least a 10pc share in this market, according to media reports.
ArcelorMittal’s chief executive officer has already earmarked Rs50bn ($678mn) for expansion, in the form of construction of a blast furnace and coke oven at Hazira steelworks. Apart from this, the company has not clarified how it plans to reach the target output.
However, it is understood that AMNS could acquire more steel plants in the country. According to media reports, the company will focus on both crude steel and downstream products during the expansion.
AMNS acquired the Odisha Slurry Pipeline Infrastructure in July, to smoothen the transport of iron ore from its Thakurani mine in the region. Of the joint venture, 60pc is owned by ArcelorMittal while Nippon Steel holds a 40pc stake, and the former looks over the majority of the operations in India.