ArcelorMittal Nippon Steel (AMNS) India plans to invest Rs 100,000 crore (US $ 13.46 billion) to expand steelmaking capacity and create new projects in the country.
The company intends to invest Rs 50,000 crores ($ 6.73 billion) of the total investment to expand its steel plant in Hazira . The funds will also go to solar, wind power and hydrogen gas production in Gujarat.
“During the meeting with the Chief Minister, ArcelorMittal Chairman L.N. Mittal has pledged to invest a total of Rs 100,000 crore in Gujarat in the coming days, ”the state government said in a statement. “Responding in the affirmative, the chief minister pledged the necessary assistance to the state government and welcomed its investment.”
The company intends to double the capacity of its steel mill in Khazira to 18 million tonnes per annum in the long term, following ongoing bottleneck elimination, to provide an 8.4 annually capacity.
In March, AMNS India signed a Memorandum of Understanding with the Odisha government to establish a new steel plant in the state with a capacity of 12 million tonnes /year. The company is considering an investment of Rs 50,000 crores for the development of the project.
The company’s steel production in the second quarter remained stable compared to the previous quarter at 1.8 million tonnes. The company recorded sales of 1.72 million tonnes in the June quarter, remaining stable compared to 1.7 million tonnes in the March quarter. Ebitda grew 50% from the previous quarter from $ 403 million in the first quarter to $ 607 million in the second quarter.